Learning About Investment Property Interest Rates Before Investing in Real Estate

Investing in real estate can be a fantastic way to build wealth and secure your financial future. However, securing the right finance and understanding investment property interest rates is vital for maximising your returns.

At Sunshine Coast Financial Solutions, we’re passionate about helping property investors achieve their goals. In this blog, we’ll break down the key things you need to know about investment property interest rates so you can make informed decisions.

When you need a loan to finance your investment journey, trust a professional mortgage broker to get you the right deal to suit your unique circumstances.

Understanding Investment Property Interest Rates

Investment loan rates differ from standard home loan rates. They are typically higher to reflect the increased risk for lenders. There are two main types of investment loan rates offered by Australian lenders:

Fixed interest rates: These lock you into a specific interest rate for a set period, providing stability and predictability for your repayments.
Variable interest rates: These fluctuate with market conditions, offering the potential for lower rates but also carrying the risk of increases over the life of your loan.

Factors Influencing Investment Loan Rates

Several factors can influence investment loan rates depending on the lender that you choose, including:

Interest Rate Type: As noted above, fixed-rate loans offer stability, while variable-rate loans can fluctuate.
Loan-to-Value Ratio (LVR): A higher LVR means higher risk for the lender, often resulting in higher interest rates being offered.
Credit Score: A good or excellent credit score can help secure more favourable rates.
Market Conditions: Economic factors and market conditions can cause interest rates to fluctuate.

Strategies for Securing the Best Investment Loan Rates

Here are some tips to help you secure the most competitive investment loan rate:

Shop around and compare rates from multiple lenders. Sunshine Coast Financial Solutions mortgage brokers can assist you with this process as we have access to a full panel of lenders.
Improve your credit score by paying bills on time and maintaining a healthy credit score.
Consider saving a larger deposit before investing to lower your LVR and potentially qualify for a better rate.

Remember that interest rates are just one factor to consider when investing in real estate. While a lower rate is desirable, prioritise finding the right property in a good location with strong rental potential.

Investment Property Loan Options

There are various loan options available for investment properties. Here are some common ones:

Interest-Only Loans: These loans allow you to pay only the interest for a set period, reducing initial payments but not the loan principal.
Principal and Interest Loans: These loans require payments on both the principal and the interest, helping to reduce the loan balance over time.
Fixed-Rate Loans: These loans offer a fixed interest rate for a specific period, providing stability in your repayments.
Variable-Rate Loans: These loans have an interest rate that can fluctuate, potentially offering lower initial rates but with the risk of increases.

Sunshine Coast Financial Solutions Can Help

Navigating the world of investment property finance can be complex. At Sunshine Coast Financial Solutions, our experienced mortgage broker team can guide you through the process, explain investment loan rates in detail and help you secure the most suitable loan for your investment goals.

We can assess your financial situation to help you understand your borrowing power and financial position, compare loan products and match them to your needs and guide you through the entire process from pre-approval to settlement on your loan.

Chris Wilson

Meet Chris Wilson, the heart of Sunshine Coast Financial Solutions (SCFS). With over a decade of experience in finance, Chris started his journey as a broker with Aussie Home Loans in 2009. His dedication earned him the title of Rookie of the Year in 2010. By 2011, he was ready to build a business based on trust and strong partnerships.

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Mark Hughes

Adam and the team at SCFS were great to deal with, prompt and made the whole situation easy for us, couldn’t rate them any higher!Thank you all for your work in helping us secure our new property

Ryan Stewart

Your search for mortgage brokers stops here. Daryl, Shanina and Chris we’re exceptional and will be our mortgage brokers whenever we decide to purchase a property. Professional, honest, reliable and experts in their field. They were a safe pair of hands to guiding us through the buying process.

Sam McGuire

I've used the scfs team several times now, and they're always fantastic can't not recommend them highly enough.

peter canino

Amazing is the only word to describe scfs

Tasman Willett

Gary Piggott

I have used the Team at SCF numerous times now. Always professional, friendly and Fast!Can not recommend this team highly enough.

Jane Storer

Adam and the team at SCF made the process so easy and seamless. We had a tight timeline and they sorted it out virtually stress free. Very knowledgeable, professional and wouldn’t hesitate to recommend. Thanks Team!

Kasey McIntyre

Daryl and the whole team at SCFS have been incredible! From our first pre approval meeting through to securing a property days after auction, they have been supportive, realistic and professional. One of the real standouts is the speed at which Daryl has been able to act and his calm, friendly, down to earth nature at every turn of the way. To us, these traits made all the difference when things moved quickly. Without question we would recommend SCFS to anyone looking for a broker and we will be life long clients.

greig buxton

This is the second time I've used Sunshine Coast Financial Solutions.They are a very professional company, very prompt with information needed and correspondence.Would definitely recommend and will use them for future loans.Many thanks

Ryan Hall

The team at scf are great and will basically handle everything that happens and let you know exactly where your at with your home loan, would definitely recommend!

Lang Family

Great to deal with Chris and the team, made it very easy for us to refinance our home loan.

Kara Kemp-Smith

Thanks heaps to Adam & Shanina for all your help & knowledge with refinancing our home loan. They went above & beyond to find us the best rate that suited our needs. Excellent communication & both Adam & Shanina made the whole process super easy. Would highly recommend SCF Solutions!

Alicia Hawkins

Adam and the team were extremely helpful and efficient and always super responsive. Highly recommend

Jodie Jenings

Our fourth time having the pleasure of dealing with Chris and his amazing team. It just gets easier every purchase! The communication was fantastic, we were updated throughout the process and felt confident that we were getting the best interest rate possible. Thank you again SCF Solutions, I can see why you’re winning so many awards. I will be referring you into our friends and family.

Marie Lourens

Highly recommend Chris and his team, as the are very responsive and gets the job done. Thank you guys for all your support through the past few years. Looking forward to work with you again in the future....Marie

C G

We had such a great experience with this business. Chris Daryl and Shanina were all so thorough and helpful with our recent house purchase. From pre approval through to completion we really felt reassured that they had everything under control and it all went so smoothly.Highly recommend.

travis woodward

Very proffesional and courteous staff , always a pleasure to deal with.Chris goes above and beyond to make sure you get the outcome your looking for and has delivered for us every time

Matty White

Adam was highly attentive, professional and extremely calm in a process that causes stress from every other angle! Thank you to Adam and the team for assisting us in our first home!

Tim Williams

Fast responsive and great to work with thanks Adam👍

Mitch Camm

These guys are fantastic, down to earth and always do their best to get it over the line for us! Highly recommend

Tegan Densem

We just worked with Adam at SCFS, and we couldn't be happier. Our mortgage situation was a bit tricky, but Adam and the SCFS team were there every step of the way. Adam was super quick to respond and always up for a call to clear things up.As first-time buyers, we really appreciated Adam holding our hands through the whole process. The team was proactive in finding the best solutions for us and handled any issues before they became problems.We highly recommend Adam and SCFS for anyone needing mortgage help. They made the whole thing smooth and stress-free. 10/10 recommend!

Bianca Palmer

We have been working with Chris and his team for some time now and he and Adam have recently secured a home loan for my partner and I on our recent purchase. Chris and Adam have made the process super easy and took the time to methodically consider all possible options for us. Have also appreciated SCFS’ pragmatic approach. Thanks Chris and Adam for another great outcome!

MSM Account

I’ve recently had the pleasure of working with the team at Sunshine Coast Financial Solutions to secure a new mortgage. Throughout the entire process, communication was clear, professional & friendly. I was kept up to date and was well informed every step of the way. I wholeheartedly recommend Sunshine Coast Financial Solutions to anyone in need of expert mortgage advice & assistance.

Rich Clare

This is the 3rd time we have used SCFS, this time for an investment property and refinance overall.Chris advised us to what our best options were taking into account taxable nature of investment and how best we structure between that and our owner occupied.The team at SCFS found us a much better rate overall and have infact reduced our monthly payments.Chris and team (Adam, Darryl, Shanina) keep you updated every step of the way and make the process seamless and easy even when we have had more complicated lending requirements.We have had the pleasure of referring several of our friends to SCFS who have been equally impressed. We are based in NSW, and absolutely no issues being in a different state.If you are after a personal service, and one that continues to proactively manage the best deal for you ongoing this team will look after you.

Kirk Vagg

Very helpful team with excellent communication throughout the whole process. Would definitely use again and highly recommended!

Lynda Edmunds

The team was friendly and very easy to deal with. They made the process of getting a loan easy by walking us through every step.

Kerry Neumann

The experience we had with Sunshine Coast Financial Services was incredible. They were professional, knowledgeable and reassuring from the start of our house purchasing journey right to the finish.Apart from all the team, we were lucky enough to have Daryl Hermann assisting us.He was so positive, helpful, encouraging and always happy to answer any questions that I had and there was plenty….Thanks to SCFS we are now the proud owners of a home we could only have dreamt of.Without a shadow of doubt I would highly recommend anyone looking to purchase a home to give these guys a call.I know I certainly will when I choose to purchase another property.

Ossie Latham

Easy to deal with, happy with the results

David Tonge

Very supportive, available, thorough and professional- highly recommend.

Elise Jamieson

My partner and I were super keen to get into the property market and reached out to Chris and his team as a result from reading these outstanding reviews and they did not disappoint. The team have been nothing but transparent throughout every process of building our first home and answered all our questions in record time. Thank you for your continuous support! Anyone needing assistance needs to look no further then SCFS! If I could put 10 stars I would.

Helen O'Keefe

Just wanted to thank Chris Wilson and Tracey Butler for looking after me again with my home loan. My fixed rate is expiring soon. Weeks ago Chris contacted me to discuss my options, the process and a plan of attack.Tracey diligently stepped in right on cue and executed the plan with a superb outcome. A better than expected interest rate, not just for now but for the future of my home loan. I couldn't be happier.This team makes you feel like they step into their customers shoes as if it was their own home loan. They strive to do everything they can for their customers and in such a friendly and professional manner. Thank you again Chris and Tracey.

Marcelle McManus

Efficient, helpful and honest advise. Highly recommend

Matt Trist (Mainland251)

What a treat it was to work with Chris and his team, they are extremely professional and we're able to find me a much better deal on my home loan. I'm now saving thousands each year! I couldn't recommend him highly enough 👍

Katrina Owen

Sunshine Coast Financial Solutions worked magic for this first home buyer. The home-buying process is very daunting for newcomers, when searching for your dream home it's hard to know the usual steps and who to trust. Chris and Adam from SC Financial Solutions provided professionalism and attention to detail each step of the way, helping to relieve stress and bring peace of mind knowing we were in safe hands throughout this life changing decision. I'll recommend SC Financial Solutions to everyone searching for an award-winning knowledgeable, reliable and responsive brokerage team.

Jay W

This new homeowner is thrilled to leave a review for Chris and his colleague Adam at Sunshine Coast Financial Solutions. These mortgage wizards worked their magic on a loan for me, comparing all leading banks of Australia, with a great result. Their efficiency and advice meant I could make a fast and easy settlement. Chris and his team have made our first home buying experience so much easier.If you need a mortgage, I couldn’t recommend enough🌞🏡 Sunshine Coast Financial Solutions 🌞🏡

David Mohi

Heidi Blattner

Excellent service, fast and efficient. I have been using the SCFS team for years and recommend them to anyone for finance solutions. You lean back and relax while they do the hard work and find you the best deal. Very happy 😊

Jesse Skinner

Today is approval day something I did not think I would be doing in this day and age with how life has been but thanks to the team at SCFS it's all been made possible and easy couldn't recommend a greater team, will definitely be using them for my next few houses

Sarah Foster

I've been using Sunshine Coast Finance for a number of years over which time they have taken care of the finance for 3 properties, I can't recommend them enough.

Mick & Amy Long

On behalf of my wife and I, We highly recommend Chris and his team for your financial needs. They made our process feel smooth and enjoyable, and we will definitely be returning in the future for their services.

Kayla Cochrane

My husband and I have worked with Daryl for a while now and the experience has been nothing but beyond exceptional. The work he puts in to help us is incredible. We would be lost without his expertise and guidance. We couldn’t recommend Sunshine Coast Financial Solutions more highly.

Francesco Piccardo

It was the first time for me to buy a house. I really had no idea how complicated it is. The Sunshine Coast Financial Solutions team support was amazing; they took care of everything and negotiated a very convenient interest rate. The communication was also fantastic. Great result with a minimum effort. Highly recommended

Absolutely amazing service. From start to finish the communication was 100%. We were kept up to date throughout the entire process and always felt supported. Daryl was so easy to talk to, responded to every question we had and I cannot thank him enough, we really appreciate all that he did for us. I will not hesitate using their service again in the future and have passed on their details to friends! Thankyou again for everything!

Ben Brewster

Excellent professional and friendly service, excellent communication, kept us informed throughout process. Highly recommend

Serena Anderson

The team at scfs are awesome. Thank you so much for making my home refinance a breeze. I've been asked by few people now, how I got this so quickly. I said "my broker is the gun". Thank you so much Chris, Shanina, Adam, Daryl and Tracey, for all your hard work, and dealing with me. Definitely 5 stars👍

Aimee Bice

I highly recommend Chris and his team @ SCF Solutions to anyone going through a divorce or any other life transition that involves financial decisions.Chris’s expertise, practical approach, and easy-going nature provided the clarity I needed to make informed decisions about my financial future. Chris’s open and honest manner empowered me with a strong understanding of my financial position and lending capability which eased the burden associated with the division of the matrimonial home. He treated me like a priority and provided valuable guidance and support every step of the way as I navigated through an emotionally challenging time.Communication during critical times in the process such as loan approval and settlement was outstanding, even when this fell over the Christmas/New Year period. Someone from his team was always available to answer any questions or concerns and provide reassurance when needed.Second time I have engaged Chris over the past 8 years, and I can proudly say I will remain a lifelong customer!If you want the best possible mortgage to suit your specific financial situation then you can’t go past Chris and his team.

Learning About Investment Property Interest Rates Before Investing in Real Estate

Understanding Investment Property Interest Rates

Factors Influencing Investment Loan Rates

Strategies for Securing the Best Investment Loan Rates

Investment Property Loan Options

Sunshine Coast Financial Solutions Can Help

What our Clients Say

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