Build Your Portfolio with Smart Lending Structures
Successful property investing isn’t just about picking the right property, it’s also about picking the right loan. Whether you are buying your first investment or expanding a multi-property portfolio, I investigate the market to find strategic lending solutions that maximise your borrowing power, tax efficiency, and cash flow.
It’s Not Just About the Rate. The Structure Also Matters.
A cheap interest rate on the wrong loan product can cost you thousands in the long run and cap your borrowing capacity. I work with you (and your accountant) to structure your loans for long-term growth.
The “Usable Equity” Strategy
Don’t use your cash savings if you don’t have to. I’ll help you calculate the “usable equity” in your current home (or portfolio) to fund 100% of the deposit and costs for your next purchase, keeping your cash buffer intact.
Avoiding Cross-Collateralisation
Banks love to link your properties together (using your home as security for your investment). This is risky for you and gives the bank too much control. I can structure your loans as “Standalone Facilities” to protect your assets and give you flexibility to sell one property without disturbing the others.
Tools to Maximise Your Returns
Interest Only Repayments
Minimise your monthly outgoings to improve cash flow and maximise tax-deductible debt.
Fixed Rate Certainty
Lock in your costs for 1–5 years to secure your yield and protect against rate rises.
Offset Accounts
A must-have for investors. Park your spare cash or rental income in an offset account to reduce interest while keeping the funds available for repairs or future deposits.
Construction & Renovation
Buying a “fixer-upper”? I can source loans that release funds in stages as you add value to the property.
Advanced Structures: Trusts & Companies
Buying in your personal name isn’t always the best option. If your accountant has recommended purchasing via a Family Trust, Unit Trust, or Company for asset protection or tax reasons, you need a broker who understands these entities. I know which lenders accept trust structures and how to get them approved without complex legal headaches.
Let’s Grow Your Wealth
Whether you’re starting with one property or managing ten, you need a strategy, not just a loan. Let’s investigate your borrowing power today.
Common Questions About Property Investment
Ideally, you want a 20% deposit (plus costs) to avoid Lenders Mortgage Insurance (LMI). However, many investors use the equity in their existing home to cover this “deposit,” meaning they don’t physically put any cash in. You can borrow up to 90% (or even 95%) with LMI if the numbers stack up.
Yes. Lenders will look at the potential rental income of the new property (usually “shaded” at 80% of the gross rent) to help service the loan. This is why you can often borrow more for an investment property than for a home you live in.
This occurs when the cost of owning the property (interest + expenses) is higher than the rental income. In Australia, you can typically claim this loss against your other income (like your salary) to reduce your tax bill. Note: I am a credit adviser, not a tax adviser. We should discuss this with your accountant.
“Interest Only” is popular for investors because it keeps monthly repayments lower (improving cash flow) and maximizes the tax-deductible debt. “Principal & Interest” pays down the loan but costs more each month. The right choice depends on your cash flow strategy.
Usable equity is usually 80% of your property’s value, minus what you still owe. For example, if your home is worth $1M and you owe $400k: 80% of $1M is $800k. Minus your $400k loan = $400k of usable equity available for your next deposit.
If your properties are “crossed,” the bank controls all of them. If you want to sell one property, the bank might force you to use the proceeds to pay down the other loans, leaving you with no cash. Keeping them separate (“standalone”) puts you in control of the sale proceeds.
Absolutely. Lenders generally treat interstate metro properties the same as local ones. It’s a great way to access affordable markets or higher rental yields outside of Sydney or Melbourne.
A rental appraisal is a letter from a real estate agent estimating how much the property will rent for. Lenders require this to calculate your borrowing power for the new loan.
A split loan involves keeping a portion of your loan variable (with an offset account) and fixing the rest. This gives you the certainty of fixed repayments while still allowing you to put your rental income into the offset account to save on interest.
Yes, but some lenders are strict about this. They may not accept “projected” Airbnb income and will only use standard long-term rental estimates. However, specialist lenders may accept actual Airbnb income history if you are refinancing an existing short-term rental.
Yes, HECS/HELP debt reduces your monthly cash flow, which reduces your borrowing power. However, because rental income helps service the loan, the impact might be less severe than when buying a home to live in.
Rentvesting is where you rent a home to live in (where you want to live) and buy an investment property (where you can afford). It gets you into the market and building equity without compromising your lifestyle.
Generally, yes. Investment loan rates are typically slightly higher (0.2% – 0.5%) than owner-occupier rates because banks view them as slightly higher risk. Interest Only loans often have a further rate loading.