Investing in Property

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Investing in property in Australia is a popular long-term strategy for anyone looking to grow their personal wealth. While many first-time investors may feel intimidated by the complexities of the stock exchange, or the unpredictability of the cryptocurrency market, buying a house seems a lot safer and a lot more familiar. You don’t need a degree in finance or the expertise of a stockbroker. All you need is a deposit, a basic understanding of how property investment works and the right finance solution. And with the Reserve Bank of Australia slashing the official cash rate to unprecedented lows, a property investment mortgage could be more affordable than you think. So, if you’re wondering whether property investment in Queensland is a viable option, contact the experienced team of brokers at Borro for some tailored advice.

Investing in Property in Australia

Australians have always placed a high value on investing in property. But owning an investment property is no longer a financial goal that is limited to older and wealthier demographics. As of January 2021, the latest statistics show that around 20% of Australian households own an investment property. And of those investors, almost 40% are between the ages of 30 and 50.

But regardless of whether you’re planning to buy your very first investment property or you’ve decided to expand on an existing portfolio, it’s critical that you get your finance structure right from the very beginning. Getting things right at the start will ensure you don’t run into any unnecessary complications in the future. At Borro, we’ll work closely with both you and your accountant, gaining a thorough understanding of your financial situation so that we can then help you achieve the correct structure for your investment property finance loan.

What are the Benefits of Using a Mortgage Broker in Queensland?

When you’re investing in property in Australia, you want to make sure that your mortgage is competitive, with the right loan features and flexibility to suit your future goals. And while it is possible to obtain a loan for an investment property by approaching a lender directly, doing so severely restricts your choices. But when you use a skilled mortgage broker in Queensland, you get:

  • Industry experience: A Queensland mortgage broker can provide you with a wealth of industry experience, something that even long-time investors can benefit greatly from. At Borro, we can explain which loan products have been most beneficial for our customers buying investment properties in recent years. We can also advise which lenders are most likely to view your application in a favourable light (significantly increasing your chances of securing an investment property loan).
  • Expansive lending panel: The brokers at Borro have access to a lending panel composed of over 50 different lenders. This allows us to compare a wide range of investment property loans, analysing each one for compatibility with your finance needs. By starting with an expansive lending panel, we’ll have far more loan products to choose from when it comes to finding the best option to suit you.
  • Free and unbiased advice: At Borro, we’re committed to acting in the best interests of our customers at all times. Not only do we feel this is the best way to do business (since a happy customer is more likely to be a repeat customer!), but as a mortgage broker in Queensland, we’re also governed by ‘Best Interests Duty’ legislation. This means you can trust us to always offer free and unbiased advice.
  • A tailored finance solution: Investment property purchases are generally more complex than buying a typical family home. So, a “one-size-fits-all” mortgage is unlikely to meet all your needs. This is why the team at Borro work to deliver investors a tailored finance solution. We’ll negotiate directly with the lender to ensure you get the right kind of finance to support your long-term investment goals.

Finding a Deposit for a Property Investment Mortgage

You might be planning to use cash from your savings as your investment property deposit. However, it may also be possible to leverage the equity in your existing properties. But what exactly is equity, and how much equity do you need to secure an investment property mortgage?

What is Equity?

Put simply, equity is the value of a property that you own outright (in other words, the portion that isn’t still covered by your home loan). There’s a good chance you may have enough equity to put towards an investment property purchase if:

  • You’ve been making added repayments to your mortgage.
  • You’ve had your mortgage for a few years now.
  • Property values in your area have increased significantly since you first bought your home.

To figure out how much equity you have in your current property, you just need to deduct the balance of your existing mortgage from the total property value. For instance, if you have a $350,000 home loan balance, and your property has been valued at $650,000, you would have $300,000 of equity (650,000 – 350,000 = 300,000). But there are a few important things to keep in mind if you’re planning to use equity as a deposit for property investment in Queensland. The first is that the value of your current property will need to be determined by a lender-approved property valuer (who may value the property slightly differently from a local real estate agent). Secondly, there is a difference between your total equity and your usable equity. Just because you may have $300,000 worth of equity, this doesn’t mean you have the equivalent of a $300,000 deposit.

How Much Equity Do You Need to Secure a Property Investment Mortgage?

You probably won’t be able to use the entire value of your equity as a deposit for an investment property purchase. Instead, most lenders will take into consideration what they term ‘usable equity’. To calculate your usable equity, start with the current value of your property and then multiply this by 80%. If you then subtract the remaining balance of your mortgage, you’ll have the usable equity value.

For example, if we again start with a property value of $650,000, we’d multiply this by 80%, which equals $520,000. If we then deduct the home loan balance of $350,000, we have usable equity of $170,000. To avoid paying Lenders Mortgage Insurance on your investment property loan, you’ll generally need a deposit of at least 20%. So, with usable equity of $170,000, you’d potentially have a big enough deposit to purchase an investment property worth up to $850,000.

However, as with any lender finance, you’ll need to consider more than just the size of your deposit. For an accurate assessment of your investment property borrowing potential, contact the team at Borro today. We’ll look at structuring your loan so that your properties are not cross-collateralised (if possible), as this will give you greater flexibility in the future. This also leaves you with the option to use different lenders, ensuring you get the most suitable loan product with the most competitive rate.

How Can You Choose the Right Structure for a Property Investment Mortgage?

When purchasing an investment property, it’s important to determine whether you want a loan with Principal and Interest repayments or Interest-Only repayments. An Interest-Only loan is usually recommended by accountants as this will enable you to maximise your tax-deductible debt. However, an Interest-Only loan will usually incur a higher interest rate, and while you’re making Interest-Only repayments, your Principal Balance is not reducing. Our expert investment property brokers can consult with your accountant to determine which solution will be most suitable for your situation.

Once we know the ideal structure and repayment type, we can get to work finding you the best possible finance deal. We’ll compare loan products from our panel of over 50 lenders and reach out to individual lenders so that we can negotiate the lowest possible rate.

What Should You Look for When Considering Property Investment in Queensland?

To get the most out of property investment in Queensland, it’s important to start with some simple research. Considering relevant details such as the property location, rental yield, vacancy rates and property amenities will enable you to more accurately determine whether a property will deliver the long-term benefits you’re hoping to achieve.

  1. Finding the right location: When considering rental property locations, don’t forget to look at the area through the eyes of a potential renter. For maximum appeal, look for properties with access to public transport and close to desirable facilities (such as parks or shopping centres). It’s also important to research the demographic of the suburb – if 75% of the population are families with school-aged children, then 3-bedroom houses in proximity to local schools will be more desirable than a studio apartment on the main street.
  2. Calculate rental yield: Rental yield is how much money you can expect to make from your investment property over the course of a year. A rental yield of around 5% is considered by many investors to be a safe and stable rate of return. To calculate the gross rental yield of a property, divide the total rent for the year by the value of the property and then multiply this by 100. For example, consider a property worth $400,000 that you can rent out for $400 per week ($20,800 per year). 20,800 divided by 400,000 and then multiplied by 100 would give you a gross rental yield of 5.2%.
  3. Research vacancy rates: A suburbs vacancy rate describes how many rental properties are currently sitting empty. If a suburb has a low vacancy rate, it’s a good indication that rental properties in the area are in high demand and unlikely to remain unoccupied for long. This is important because every week an investment property sits vacant is a week of lost income for the investor. Use online real estate search tools to assess suburb vacancy rates or talk to a local property manager.
  4. Look for the right features: Certain features could make a rental property more (or less) desirable to prospective tenants. A property that is low maintenance, has off-street parking, plenty of natural light and a second bathroom will be far more appealing to most tenants than a similar sized property that is high maintenance, located on a busy main road or that has nowhere to park. Once again, it’s a good idea to consult with a local property manager, as they can give specific advice on what features will be most appealing to prospective tenants.

To discuss your investment property goals with a Borro Finance Specialist, get in contact today via Ph: 1300 1 BORRO or email: loans@bnedigital.com/clients/borro.

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Frequently Asked Questions For Refinancing Your Home Loan

At Borro we understand that homeowners choose to refinance their mortgage for different reasons. It might be to consolidate debt, purchase an investment property, renovate your existing home, or maybe you are simply looking for a lower interest rate. No matter the reason we can help you grow a healthier financial future by refinancing home loan.

The ACCC Home Loan Price Inquiry report recommended that lenders prompt borrowers to consider refinancing every 3 years. However, we believe that a reassessment should be carried out once a year for maximum benefit. This doesn’t mean that you need to do a complete refinance every 12 months. But a reassessment completed by an experienced mortgage broker will tell you if your home loan is still offering a competitive interest rate or whether you would be better off refinancing. Additionally, it’s important to do a home loan reassessment whenever you’re approaching the end of a fixed interest rate period. This is because most lenders will automatically roll a home loan over to their standard variable rate once the fixed rate term has concluded (which may be significantly higher than your current low fixed rate).

Many homeowners are wondering if now is a good time to refinance home loans in Australia. For most, the answer will be “yes” if you’ve had your current home loan for 2 years or more. The official RBA cash rate has been sitting at just 0.10% for over 7 months, which has resulted in lenders dropping their interest rates to remain competitive. How far have rates dropped? Well, the average variable home loan rate in Australia is now 106 basis points lower than it was in June 2019. While most interest rates in 2018/2019 began with a 4, many fixed interest rates now start with a 2, and some lenders are offering interest rates as low as 1.99%!


Meanwhile, property prices in South-East Queensland have been steadily rising as interstate migration increases demand in the local property market. This means that many homeowners will now have more equity, which puts them in a stronger refinancing position.

If you’re considering refinancing your home loan, start by talking to a mortgage broker at Borro. That will allow you to explain what you hope to achieve from your refinance and get expert answers to any questions that you may have. We can then assess your current home loan and compare it with a wide range of mortgage products from a diverse panel of lenders. Once we’ve identified which home loan product will present you with the best possible results, we can then get started on your refinance application.


The process of refinancing is similar to what you would have experienced when you applied for your original home loan. The new lender will want to see evidence of your current income and living expenses, as well as recent statements from your current mortgage lender. They’ll also arrange for an evaluation of your property to determine how much equity you currently have. The good thing about refinancing is that borrowers are often in a stronger financial position than when they were first home buyers. And the stronger your financial position, the easier it is for us to negotiate better loan terms.


Once the refinance home loan has been approved, the new lender will arrange for your existing home loan to be repaid in full. You’ll then start making repayments to the new lender.

The length of time it takes to process a home loan refinance will vary depending on a range of variables, including which lender you’ve chosen and how complex your application is. Typically, to refinance a home loan in QLD will take around 4-6 weeks from start to finish. However, thanks to the ongoing ramifications of COVID (and the surge in refinance applications), most refinance applications are currently taking slightly longer to finalise (averaging around 6-8 weeks).

Some borrowers hold off on refinancing because they’re happy with their current lender and don’t like the idea of having to switch. The good news is refinancing doesn’t necessarily mean changing lenders. We can approach your current lender about refinancing your existing home loan to a product with a more competitive interest rate or with more suitable loan features. Many lenders will readily allow existing customers to refinance because it’s more economical for them to lower your rate than lose your business altogether.

Many lenders are currently offering refinance cashback deals of up to $3,000 to refinancing homeowners. For some borrowers, this will not only cover the costs associated with refinancing but also leave them with a bit of leftover cash. However, before refinancing for a cashback deal, it’s important to assess whether the loan product on offer is right for you. There’s not much point in refinancing if the loan isn’t competitive or won’t support your long term financial goals. To ensure a cashback refinance deal will be beneficial, talk to one of the experienced brokers at Borro.

According to a 2020 study by CoreData, almost 1 in 2 homeowners don’t think banks are acting in their best interests. Additionally, over half of those surveyed were sceptical about whether a bank would provide them with unbiased financial advice. Considering this is how so many homeowners feel, it’s easy to see why some may be hesitant to refinance.


Fortunately, the mortgage brokers at Borro can help. Our brokers are governed by legislation known as ‘Best Interests Duty’, which means that we are legally required to always act in the best interests of our customers. We can provide you with expert advice that is totally unbiased and tailored to suit your current financial situation. So, when you work with a broker from Borro, you can trust that you’re getting the best refinance deal to suit your needs.


The experienced team of mortgage brokers at Borro can help you successfully restructure your finances, ensuring that when you refinance, you’ll always come out in front and achieve great savings. If you’re ready to start the process of finding a better deal, then contact us today on Ph: 1300 1 BORRO or email: loans@borro.com.au.

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We compare all loans across a large panel of 50+ lenders to find the right solution for you. Our Finance specialists are experienced in all types of loans, ranging from home loans to personal loans through to asset and commercial loans, offering you a comprehensive range of options to help you borrow money.

Whether you’re a…

  • Homeowner who wants to refinance to a more competitive interest rate
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At Borro, our experienced team of mortgage brokers can compare a wide range of home loans across an extensive panel of 50+ lenders. This means that we won’t just find any old solution for you…

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We compare all loans across a large panel of 50+ lenders to find the right solution for you. Our Finance specialists are experienced in all types of loans, ranging from home loans to personal loans through to asset and commercial loans, offering you a comprehensive range of options to help you borrow money.

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Debt Consolidation

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Customer Reviews

What our finance clients say about us

Patrick Williamson
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One of the many great things I can say about Cara and Karlee is they've always got your back. When one of the Big 4 banks tried to give us a variable interest rate 1% higher than the rate we had applied to rate lock because they had dragged their feet processing the rate lock payment despite repeated reminders from Karlee, Cara escalated to a state manager to fight for the original rate, and would not take no for an answer. Her determination caused the reluctant manager to back down and give us the original rate. Not only will this save us a LOT of money, it demonstrates how fiercely the crew at Borro were prepared to defend our interests, and it comes after a strong history of high quality service and responsiveness. I cannot praise the Borro team highly enough, and would not hesitate to recommend them to anyone. Professional integrity like this is hard to find!
Kelsea Johnson
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Can’t thank Karlee and Cara enough for all of their help and support in making our dream into a reality. Before we had our first meeting with Cara, we thought that purchasing our block of land and building our home was not possible. We’d had set backs with other bank/brokers and we were feeling very deflated. We left our meeting with Cara and we’re approved within weeks. Karlee has been so amazing and supportive with all of the paperwork, and is so quick to respond and action anything. She has been so patient with all of the blocks development delays, and has made the process so easy and stress free. She communicated with us throughout the process so we always knew what was happening. The knowledge and experience that these ladies have has made our dreams a reality, and I would recommend them to anybody.
Angela Willis
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I feel on my feet after finding Cara and Karlee from BORO. They were both there from start to finish in finding the right home loan and consolidating my debts they always returned my emails and phone calls promptly and happy to try and answer any questions I had. They are both kind, caring, smart, and very knowledgeable brokers. I give them 5 stars out of 5! I would highly recommend them to anybody looking for a great broker ! Thank you once again Cara and Karlee X
Ric Ha
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Cara and her team have been wonderful to deal with for my first property purchase! I decided to engage Cara because I got to see first-hand her capabilities when previously working in conveyancing. I noticed that Cara was willing to go above and beyond and actually cared about her clients. Cara made the process as simple and stress free as possible. Cara and her team provided quick responses to all my queries during the process which was much appreciated. I am more than happy to recommend Cara to anyone looking to engage a mortgage broker. Cheers - Ricco
Blue Mountain
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Cara and team are absolutely fantastic to deal with.. swift and prompt service throughout. Cara managed to get almost double the borrowing amount for our investment than our bank. There were no delays and always had accurate communication with us and the conveyancer. Cara and Karlee were quick in all their replies to our calls and emails. Helped us to buy our second investment property in Aus and refinance existing home loans. Team borro went above and beyond to get the best deal possible for us. Thankyou. Positive: Professionalism, Quality, Responsiveness, Value
htein lin oo
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I rarely give review on google but for Cara I have to give them 5 stars. She is the BEST mortgage broker I have been dealt with in last 7 years.Not one of the best I mean the BEST. Professional, very quick response, make job done in one week (not even one week actually). She works for you man, not for the big banks !! Positive: Professionalism, Quality, Responsiveness, Value
Nicole Pyrcz
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We have just recently refinanced our home loan through the team at Borro and I honestly couldn't recommend them enough to anyone in need. We mostly dealt with Cara who was extremely professional, helpful and efficient. Customer service is a very important aspect for us and I was blown away by the level of service we received in comparison to other brokers we have used in the past. The documentation process was very easy and quick to use online and Cara was so good at anticipating what the banks may require in advance so there was never any time wasted. I also really like how Borro have a dedicated team structure such as client services managers to assist with the whole process to ensure everything is streamlined. Karlee followed up with us on a regular basis and nothing was ever too much trouble. We will definitely be using their services again. We are really grateful for their quality service and are really happy with the outcomes. Positive: Professionalism, Responsiveness
Nicole Patterson
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Thank you to Cara and the team at Borro for going above and beyond with our recent property refinance. Cara’s in-depth knowledge and expertise meant that we were met with professional service and advice from start to finish. Every query and question was answered straight away and the process was simple, fast and streamlined, which is exactly what we needed being busy, working parents. We are extremely happy with the outcome and highly recommend Borro. Thank you for exceeding our expectations and we look forward to working with you again in the future!
Mccarthy Jane
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The support I received from Cara in sourcing my mortgage was Outstanding. I currently live overseas, which in self, came with its own challenges. But with Cara’s ‘can do’ attitude, financial knowledge and strong communication skills, she successfully secured the right package for me. I would highly recommend Cara and Borro and really appreciate all the help she has provided me.
Susanne Hayward
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Cara will move mountains to get the best value. Extremely motivated and will not giveup. Cara is Professionally Dedicated. Her expertise, knowledge in finance Industry is guaranteed service with a smile, value honesty and integrity. Cara is An amazing Lady and she will inspire you, and strive to deliver results for you Making you feel like you have won lotto. However you may not of won lotto, You have however won and met Cara. Positive: Professionalism, Quality, Responsiveness, Value
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Frequently Asked Questions For Refinancing Your Home Loan

At Borro we understand that homeowners choose to refinance their mortgage for different reasons. It might be to consolidate debt, purchase an investment property, renovate your existing home, or maybe you are simply looking for a lower interest rate. No matter the reason we can help you grow a healthier financial future by refinancing home loan.

The ACCC Home Loan Price Inquiry report recommended that lenders prompt borrowers to consider refinancing every 3 years. However, we believe that a reassessment should be carried out once a year for maximum benefit. This doesn’t mean that you need to do a complete refinance every 12 months. But a reassessment completed by an experienced mortgage broker will tell you if your home loan is still offering a competitive interest rate or whether you would be better off refinancing. Additionally, it’s important to do a home loan reassessment whenever you’re approaching the end of a fixed interest rate period. This is because most lenders will automatically roll a home loan over to their standard variable rate once the fixed rate term has concluded (which may be significantly higher than your current low fixed rate).

Many homeowners are wondering if now is a good time to refinance home loans in Australia. For most, the answer will be “yes” if you’ve had your current home loan for 2 years or more. The official RBA cash rate has been sitting at just 0.10% for over 7 months, which has resulted in lenders dropping their interest rates to remain competitive. How far have rates dropped? Well, the average variable home loan rate in Australia is now 106 basis points lower than it was in June 2019. While most interest rates in 2018/2019 began with a 4, many fixed interest rates now start with a 2, and some lenders are offering interest rates as low as 1.99%!


Meanwhile, property prices in South-East Queensland have been steadily rising as interstate migration increases demand in the local property market. This means that many homeowners will now have more equity, which puts them in a stronger refinancing position.

If you’re considering refinancing your home loan, start by talking to a mortgage broker at Borro. That will allow you to explain what you hope to achieve from your refinance and get expert answers to any questions that you may have. We can then assess your current home loan and compare it with a wide range of mortgage products from a diverse panel of lenders. Once we’ve identified which home loan product will present you with the best possible results, we can then get started on your refinance application.


The process of refinancing is similar to what you would have experienced when you applied for your original home loan. The new lender will want to see evidence of your current income and living expenses, as well as recent statements from your current mortgage lender. They’ll also arrange for an evaluation of your property to determine how much equity you currently have. The good thing about refinancing is that borrowers are often in a stronger financial position than when they were first home buyers. And the stronger your financial position, the easier it is for us to negotiate better loan terms.


Once the refinance home loan has been approved, the new lender will arrange for your existing home loan to be repaid in full. You’ll then start making repayments to the new lender.

The length of time it takes to process a home loan refinance will vary depending on a range of variables, including which lender you’ve chosen and how complex your application is. Typically, to refinance a home loan in QLD will take around 4-6 weeks from start to finish. However, thanks to the ongoing ramifications of COVID (and the surge in refinance applications), most refinance applications are currently taking slightly longer to finalise (averaging around 6-8 weeks).

Some borrowers hold off on refinancing because they’re happy with their current lender and don’t like the idea of having to switch. The good news is refinancing doesn’t necessarily mean changing lenders. We can approach your current lender about refinancing your existing home loan to a product with a more competitive interest rate or with more suitable loan features. Many lenders will readily allow existing customers to refinance because it’s more economical for them to lower your rate than lose your business altogether.

Many lenders are currently offering refinance cashback deals of up to $3,000 to refinancing homeowners. For some borrowers, this will not only cover the costs associated with refinancing but also leave them with a bit of leftover cash. However, before refinancing for a cashback deal, it’s important to assess whether the loan product on offer is right for you. There’s not much point in refinancing if the loan isn’t competitive or won’t support your long term financial goals. To ensure a cashback refinance deal will be beneficial, talk to one of the experienced brokers at Borro.

According to a 2020 study by CoreData, almost 1 in 2 homeowners don’t think banks are acting in their best interests. Additionally, over half of those surveyed were sceptical about whether a bank would provide them with unbiased financial advice. Considering this is how so many homeowners feel, it’s easy to see why some may be hesitant to refinance.


Fortunately, the mortgage brokers at Borro can help. Our brokers are governed by legislation known as ‘Best Interests Duty’, which means that we are legally required to always act in the best interests of our customers. We can provide you with expert advice that is totally unbiased and tailored to suit your current financial situation. So, when you work with a broker from Borro, you can trust that you’re getting the best refinance deal to suit your needs.


The experienced team of mortgage brokers at Borro can help you successfully restructure your finances, ensuring that when you refinance, you’ll always come out in front and achieve great savings. If you’re ready to start the process of finding a better deal, then contact us today on Ph: 1300 1 BORRO or email: loans@borro.com.au.

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