Investment Loans
If you don’t plan to live in the home you buy, you need an investment property mortgage. The terms of the loan, including the maximum loan amount, is dependent on the fact that you won’t live in the home. Lenders view this situation as ‘higher risk’ because you don’t stand to lose your own residence if you can’t make the payments.
Investment property mortgages are, generally, easy to obtain if you meet the requirements
If you don’t plan to live in the home you buy, you need an investment property mortgage. The terms of the loan, including the maximum loan amount, is dependent on the fact that you won’t live in the home.
Lenders view this situation as ‘higher risk’ because you don’t stand to lose your own residence if you can’t make the payments.
While the hope is that you’d make your payments to avoid causing ill consequences for your tenants, the risks are still higher, which means different requirements, terms, and costs for investment property owners.
Are investment property interest rates higher than normal mortgages?
Generally, they are the same. But lenders base the interest rate on the riskiness of your default; if your chances of defaulting are high, the higher the interest rates lenders charge. Our list of the best home loans applies to property investors.