Investment property
Basic lending criteria:
- You should have 5% – 10% in genuine savings
- If you are borrowing more than 90% then some lenders like to see equity in other properties
- A good credit history
- An above-average credit score
- Stable employment
What portion of your rental income is considered?
While most lenders only consider 80% of your rental income in their assessment, there are some lenders that will use the full 100% in their calculations. Therefore, it is essential that property investors use the right lender.
Are all property types acceptable?
As a rule of thumb, your property should meet these minimum requirements:
- Be a standard unit, house, townhouse, or land and construction.
- Be greater than 30m² living areas.
- Be in a good condition.
- Be located in a high-demand location (major city or town with more than 10,000 people).