Borrowing capacity
Model the proposed purchase alongside your income, commitments, existing properties and lender assessment rules.
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Investment property lending · Australia-wide
Plan the finance for your next investment property.
Understand your borrowing capacity, how a lender may assess rental income, and the deposit or equity needed for your purchase. Brion helps compare suitable loan structures for investment properties across Australia.
Perth-based broker · Phone and online support throughout Australia
Understanding your options
How does investment lending differ?
An investment property loan is assessed against more than the property’s expected rent. Lenders may use only part of the rental income, apply buffers to existing debts and treat living expenses, other properties and credit limits differently. Those policy differences can materially affect borrowing capacity.
The loan structure also deserves careful attention. Interest-only or principal-and-interest repayments, fixed or variable rates, offsets and the use of available equity can affect cash flow and flexibility. Credit advice should be coordinated with independent tax, accounting and legal advice.
Equity position
Understand available equity, likely loan-to-value ratios and the implications of using another property as security.
Loan structure
Compare repayment types, rates, features and security arrangements against your plans and cash-flow priorities.
Purchase support
Coordinate the lending steps, valuation, conditions and progress updates through to settlement.
Plan the finance before the property
A borrowing-capacity review can help you establish a realistic price range before you spend time on property searches. It can also reveal where existing credit limits, loan structures or documentation may affect the result.
If you already own property, using equity may reduce the cash deposit required, but it does not remove the debt or risk. Brion can explain how a proposed security structure works so you can discuss the ownership and tax implications with your professional advisers.
- First-time and experienced property investors
- Clients purchasing interstate
- Investors reviewing an existing portfolio
- Self-employed borrowers with more complex income
Questions a useful review should answer
The right option depends on the intended property, rent, deposit or equity, income and longer-term plans. It should also leave room for vacancies, repairs, rate changes and other ownership costs.
BGW does not provide property selection, financial planning or tax advice. Brion focuses on the loan application and works alongside the accountant, financial adviser, buyer’s agent, solicitor or conveyancer you choose.
- What purchase range is realistic?
- How will rent be treated by the lender?
- Which property will secure each loan?
- What happens to repayments if rates or circumstances change?
The terms explained
Equity, borrowing and security.
Equity is the property’s value less the debt secured against it. Usable equity is the amount a lender may allow you to borrow after considering its limits and your ability to repay. These are different figures.
Loan-to-value ratio (LVR) compares the proposed loan with the lender’s accepted property value. Security is the property the lender can rely on if the loan is not repaid.
Illustrative structure: an equity-release loan may be secured against an existing home, while a separate investment loan is secured against the purchased property. Both loans have repayments and both properties may be at risk. Other structures may be offered. The lender must approve the arrangement, and your advisers should review the ownership and tax treatment.
Reviewing an existing loan? Explore refinancing →Frequently asked questions
Useful answers before you begin.
Can you help with an interstate investment property?
Yes. BGW works with clients and property purchases across Australia. The lender will still assess the property type, postcode, valuation and your complete financial position.
Can I use equity as my deposit?
Potentially. Available equity depends on property values, loan balances, the proposed loan-to-value ratio and lender assessment. Using equity increases borrowing and should be considered carefully.
Is interest-only always better for investors?
No. Interest-only repayments may assist short-term cash flow but do not reduce principal during the interest-only period and may cost more overall. Suitability depends on your circumstances and advice from relevant professionals.
Do you provide tax or investment advice?
No. BGW provides credit assistance. Speak with an appropriately qualified accountant, tax adviser or financial adviser about ownership, deductions, cash flow and investment strategy.
Your next step
Ready to talk about your loan?
Tell Brion what you are planning and the questions you would like answered.