Investment Loans

Buy your first investment property or expand your portfolio with an Investment Loan

At Sum Finance, we understand that investing in property is a significant step for both everyday Australians and high net-worth individuals. Whether you're looking to purchase your first investment property or expand your investment property portfolio, having access to the right investment loan options is crucial. Our expertise lies in helping you find tailored solutions from banks and lenders across Australia, making your property investment journey smoother and more informed.

When considering an investment loan, the interest rate is a crucial factor. It can affect the overall cost of your loan and your potential returns. At Sum Finance, we offer a range of options, including both variable interest rates and fixed interest rates, so you can choose what best suits your financial situation. Variable interest rates may offer more flexibility, while fixed interest rates provide certainty over repayment amounts. Our team can help you weigh these options and find a solution that aligns with your investment goals.

Understanding lenders mortgage insurance (LMI) is also important when applying for an investment loan. LMI is often required if your loan to value ratio (LVR) exceeds 80%. This insurance protects the lender in case you default on the loan. By improving your credit history and saving for a larger deposit, you can potentially avoid or reduce LMI costs. Our advisors can guide you through strategies to enhance your credit profile and help improve your borrowing capacity.

The application process for an investment loan involves several steps. At Sum Finance, we pride ourselves on offering a streamlined application process, ensuring that you have all the necessary documentation ready. This includes bank statements, proof of income, and a detailed understanding of your financial situation. Calculating investment loan repayments accurately is vital to ensure that your borrowing is sustainable and aligned with your long-term goals. We provide tools and advice to help you understand what you can afford, considering all factors like stamp duty and potential interest rate discounts.

Expanding your investment property portfolio requires careful planning and insight into the property market. By assessing different investment loan options, you can make informed decisions about how to finance additional properties. Whether you're looking at purchasing in a growing suburb or seeking to refinance existing properties, our team can offer expert advice tailored to your needs.

In conclusion, Sum Finance is here to support you every step of the way as you access investment loan options from banks and lenders across Australia. We are committed to helping you maximise your investment potential by offering personalised solutions and expert advice. Reach out to us today to discuss your investment goals and see how we can assist in making them a reality.

Our Investment Loan Process

1. Initial Consultation and Fact Find

We start your journey by understanding your financial goals. Are you looking to build a property empire, repay your loan as fast as possible or anywhere in between?

Once we have established your long-term goals, we work towards making this transaction your first step in that journey. Whether you’re buying a home, investment property or commercial real estate, this meeting helps establish our next steps.

This meeting is also used to ensure you understand the process of purchasing and financing, including financial terms like loan-to-value ratio (LVR), interest rate discounts, and lenders mortgage insurance (LMI) that might apply based on your specific financial position.

2. Financial Assessment and Borrowing Capacity

Based on your information, we prepare indicative borrowing capacity scenarios and loan structures that will work for you. We talk through these options, deciding which the superior approach for a pre-approval.

3. Exploring Loan Options

After assessing your financial situation and deciding on the most appropriate loan structure, we will compare various loan products from multiple lenders, taking into account factors like interest rates, fees, repayment terms, and loan features. We will also help you understand the differences between fixed and variable loan rates and the implications of each option on your future repayments. The aim is to find a loan that best suits your needs, whether you're looking for a home loan, investment loan, or a loan to fund another property purchase.

4. Pre-Approval Process

One of the first major milestones is receiving loan pre-approval. This process involves getting an initial indication from a lender regarding how much you may be able to borrow. Pre-approval helps you set a realistic budget and gives you more confidence when making offers on properties. It also strengthens your position in the local property market, showing sellers that you’re a serious buyer.

5. Unconditional Approval

Once you have purchased, we will review our Initial Consultation and your Financial Situation to ensure our recommended loan product is still appropriate. We will then prepare a final submission to the lender in order to provide you with an unconditional approval.

6. Loan Approval & Final Steps

Once your loan is approved, your broker will guide you through the next steps. This typically includes reviewing the loan agreement, ensuring all terms and conditions are understood, and arranging for any additional insurance coverage, such as mortgage insurance. Your broker will also help you set up repayment options and advise on strategies for managing your loan effectively over time.

7. Property Settlement & Ownership

Once all the documentation is in order, the final settlement takes place. This is when the loan is formally advanced, and ownership of the property is transferred to you. If you’re purchasing a property, it’s recommended that you engage a solicitor or conveyancer to ensure the transfer goes smoothly. After settlement, your lender will typically offer online access to your loan, and you’ll begin managing your loan repayments, helping you stay on top of your financial commitments.

8. Review

Our work is never done! Post settlement, we continue to engage, check-in and review your lending structure to ensure we are on the path agreed on in our Initial Consultation.