Common questions
FAQs
Interest only or principal and interest for an investment property?
This depends on your tax position, cash flow goals and how long you plan to hold the property. Interest only keeps repayments lower and maximises your tax-deductible interest expense, but does not reduce the loan balance. Principal and interest builds equity over time. Lendology discusses your specific situation - there is no universal answer.
How do lenders assess rental income?
Lenders typically apply a shading factor to rental income when calculating serviceability - often 70% to 80% of actual or expected rent. Some lenders are more favourable for investors with multiple properties or certain income types. Lendology identifies the most favourable lender for your situation.
Can I use equity from my home to buy an investment property?
Yes - if you have sufficient equity in your owner-occupied property, you can use it as a deposit for an investment purchase. Lendology assesses whether this makes sense for your situation and structures the lending to keep your home and investment debt appropriately separated.
Can I get an investment loan if I am self-employed?
Yes. Self-employed borrowers can access investment loans, but lender selection and documentation requirements differ from PAYG applicants. Lendology specialises in self-employed lending and identifies the lenders most likely to assess your income favourably.