Before you start looking for an investment property, consider reviewing an online borrowing limit calculator that will give an estimate of how much you can borrow. Although a more detailed review will occur at the time of application, these calculators will provide you with some guidance on what to base your property research on.
Most commonly used for a first investment property, buying with a cash deposit is the traditional process of using a deposit to secure a home loan. These deposits usually range between 5% – 20% percent, and usually fluctuate on the bank’s willingness to provide loans for investment.
Using equity to finance your property is a great way to build your investment portfolio without having large outlays of cash. Essentially, instead of using cash as a deposit, you secure the mortgage with an asset such as another property.
For more information see our Property Investment Guide
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