Investment Property Loans

Turn Real Estate into Revenue

Investment property loans are designed for individuals or businesses looking to purchase properties specifically for rental income or future resale.

These loans allow you to capitalize on the potential returns from real estate by acquiring single-family homes, multi-unit buildings, or commercial properties with the intention of generating passive income or selling for a profit once the property appreciates in value.

Compared to residential mortgages, investment property loans typically come with higher interest rates and stricter terms. This is due to the increased risk associated with investment properties, as they rely on rental income or resale value to secure the loan. Lenders may require a larger down payment and more extensive financial scrutiny to ensure that the investment is viable, and the borrower can manage potential vacancies or market fluctuations during the course of the loan.

Key Features

  • Financing for residential and commercial investment properties
  • Competitive fixed and variable interest rates
  • Flexible repayment terms (up to 25 years)
  • Expert consultation on profitable property selection

FAQs

How is an investment property loan different from a regular home loan?
<p>The key difference is that investment property loans generally have stricter requirements. Lenders often charge higher interest rates, require larger down payments, and may impose stricter credit score criteria because investment properties carry more risk for lenders.</p>
What is the minimum down payment for an investment property loan?
<p>The minimum down payment usually ranges from 15% to 25%, depending on the lender and the specifics of the loan. The larger the down payment, the more favourable the loan terms may be.</p>
Can I get an investment property loan with bad credit?
<p>While it is more challenging, it is possible to get an investment property loan with bad credit. However, you may face higher interest rates or be required to pay a larger down payment. Some lenders may also require you to have a co-signer or a stronger financial history elsewhere.</p>
What types of properties can I buy with an investment property loan?
<p><span style="font-weight: 400;">You can typically use an investment property loan to purchase:</span></p> <ul> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Single-family homes</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Multi-family properties (2–4 units)</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Vacation homes or rental properties</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Commercial real estate, though the terms for commercial loans will differ</span></li> </ul>
Can I use rental income to qualify for an investment property loan?
<p>Yes, rental income from the property can often be used to help you qualify for the loan, but the lender will assess its stability and sustainability. Typically, 75% of the projected rental income is considered for qualification purposes.</p>
What is the loan term for an investment property loan?
<p>The loan term typically ranges from 15 to 30 years, similar to standard home loans. However, some investment loans may have shorter terms, or come with a balloon payment at the end of a fixed period.</p>
Can I refinance my investment property loan?
<p>Yes, refinancing is possible if you want to take advantage of lower interest rates, reduce monthly payments, or change the loan terms. However, lenders may have stricter requirements for refinancing an investment property than for a primary home.</p>
What are the risks of investment property loans?
<p><span style="font-weight: 400;">Some of the risks include:</span></p> <ul> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Vacancy risk if you&#8217;re unable to rent out the property</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Property value fluctuations</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">High maintenance or repair costs</span></li> <li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Difficulty in selling the property if needed</span></li> </ul>
Can I buy an investment property loan without a tenant in place?
<p>Yes, you can purchase an investment property even without tenants in place. However, lenders may be more hesitant or offer less favorable terms if the property isn’t generating immediate rental income.</p>

Related Services

01. Refinance Mortgages

Refinancing allows property owners to replace their current mortgage with a new one often to secure a lower interest rate, adjust the loan term, or switch to a more suitable mortgage product.

It’s a practical way to reduce monthly payments, save on interest over time, or improve overall loan terms to better match your financial goals.

02. Islamic Home Finance

Islamic home finance is offered by Islamic banks or the Islamic windows of conventional banks, providing an alternative to traditional mortgages. These financing options are structured in a way that avoids charging interest, aligning with Islamic principles that prohibit Riba (usury). The most common structures include Murabaha (cost-plus financing) and Ijara (leasing), both designed to ensure that the financial transactions comply with Sharia law while allowing individuals to purchase houses.

03. Credit Card Services

As an ancillary service, we also arrange for our clients tailored credit card solutions from leading banks to meet their individual and business needs. Our team streamlines the application process, ensures competitive offers, and provides expert guidance to help you choose the right card—whether it’s for rewards, travel, cashback, or corporate use.

With strong banking partnerships and a client-first approach, we make access to financial flexibility simple and efficient.

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