There are 2 ways you can get approval for a 100% investment property loan:

• Investment Guarantor loan

If family or friends can guarantee your loan using their property as security, then you can borrow 105% of the purchase price and pay no LMI.

You will need to have an eligible guarantor with a clean credit history and a clean credit history with no defaults yourself.

Your guarantor needs to have enough equity in their own property, to cover 20% of your property purchase price.

Also, you will need to have a positive asset position, which means that your total assets are greater than your total liabilities and you will also need to demonstrate, that you can make the repayments

• Using another property as security

If you own another property, then you can use the equity as a deposit for your investment property.

The value of the property will be assessed by a professional valuer and the bank valuation, will be used to work out the loan size and the loan to value ratio, which gives the bank an indication of how much they can recover, if they have to sell the property.

The following types of property generally cannot be used as security:

• Studio Flats
• Serviced apartments
• Inner city flats
• Heritage listed properties
• High end luxury properties

 Generally, these types of loans are available mostly from specialist lenders.

If you want to know more and find out if you qualify for an Investment Loan, contact  propertyloans@realrenta.com  and we will arrange for a no obligation chat with our Finance Partner.