As a FIFO civil engineer, your unique work arrangements and income structure can make applying for an investment loan feel more complex than it needs to be. However, with the right approach and understanding of the application process, you can access investment loan options from banks and lenders across Australia to build your property investment portfolio.
Understanding Investment Loan Applications
When you're buying an investment property, whether it's a town house, apartment, or stand alone dwelling, the application process differs from your standard home loan. Lenders assess your borrowing capacity based on your ability to service the loan through rental income and your personal income.
The key factors lenders consider include:
• Your current income and employment stability
• Existing debts and financial commitments
• The property's rental yield potential
• Your loan to value ratio (LVR)
• Bank statements showing your financial position
Getting Your Application Ready
Before you start applying for an investment loan, it's crucial to research property markets and understand your investment property strategy. FIFO workers often have strong earning capacity, which can work in your favour when demonstrating borrowing capacity to lenders.
Your rental property loan application will require:
- Employment verification - FIFO contracts and pay slips
- Bank statements - typically three to six months
- Property details - purchase contract and rental appraisal
- Financial position - assets, liabilities, and expenses
Investment Loan Features to Consider
When exploring investment loan options, you'll encounter various property investment loan features that can impact your investment strategy:
Interest Rate Options:
• Variable interest rate - fluctuates with market conditions
• Fixed interest rate - locked rate for a set period
• Split loans - combination of fixed and variable
Ready to get started?
Book a chat with a Finance & Mortgage Broker at FIFO Home Loans today.
Managing Costs and LVR Requirements
Your loan amount and loan to value ratio significantly impact your investment loan application. Most lenders offer investment loans up to 80% LVR without requiring lenders mortgage insurance (LMI). If you're borrowing above 80%, LMI will be added to your loan costs.
Additional costs to factor into your investment include:
• Stamp duty (varies by state)
• Legal fees and property inspections
• Ongoing property management fees
• Insurance and maintenance costs
Calculating Your Investment Returns
Calculating investment loan repayments involves more than just the investment loan interest rate. You need to consider the rental yield from your investment property and potential negative gearing benefits.
Negative gearing occurs when your property expenses (including loan repayments) exceed your rental income. This can provide tax advantages, though you should always consult with a tax professional about your specific situation.
Streamlined Application Process for FIFO Workers
Working with a mortgage broker who understands FIFO employment can make your application process more efficient. They can help you:
• Access interest rate discounts from various lenders
• Present your income in the most favourable way
• Find lenders comfortable with FIFO employment
• Structure your loan to maximise your investment strategy
Whether you're buying your first investment property or expanding your existing property investment portfolio, having the right support makes a significant difference in securing approval and getting competitive terms.
Making Your Investment Property Decision
The property market offers various opportunities, from high-yield apartments in mining towns to capital growth properties in major cities. Your choice should align with your investment goals and risk tolerance.
Remember that invest in real estate requires careful planning and consideration of your long-term financial objectives. Take time to understand the local rental market, vacancy rates, and growth prospects before making your decision.
Call one of our team or book an appointment at a time that works for you. Our specialists understand FIFO employment and can help structure your investment loan application for success.
