Assessing an Investment Property Application
Investment lending assessments bring rental income, existing portfolios, and investor specific serviceability treatments together. Clean assessments help investors move quickly on opportunities.
Reviewing the existing portfolio
Start with a full picture of the existing investment portfolio. For each property, capture the value, the loan balance, the rental income, and the ongoing costs. Lenders treat the existing portfolio position as a key serviceability input, so accuracy here is essential.
Modelling the new property
For the proposed purchase, model the expected rental income, the loan amount, the interest rate, and any specific investor loadings. Include stamp duty and other upfront costs in the funds to complete figure. Investment loans often have slightly higher rates and stricter LVR caps than owner occupier loans.
Choosing the right loan structure
Investors often prefer interest only loans to maximise cash flow and deductible interest. Some lenders are more flexible on IO lending than others. Choose a structure that suits the investor tax position and cash flow strategy while meeting the lender policy requirements.
Key takeaways
- ✓Review the full existing portfolio before assessing the new purchase
- ✓Model rental income with appropriate shading
- ✓Choose a loan structure aligned to the investor strategy
- ✓Match the file to a lender with suitable investor policy
How QualifyMate helps
QualifyMate aggregates rental income by property address and reads existing home loan statements alongside the income and liability documents, giving brokers a consolidated view of an investor portfolio without manual reconciliation.
Key terms
Rental Income
Income earned from leasing out an investment property to a tenant, usually collected monthly or fortnightly.
Interest Only Loan
A loan where the borrower pays only the interest charge for a set period, leaving the principal balance unchanged.
Loan to Value Ratio (LVR)
The loan amount expressed as a percentage of the property value, used by lenders to assess risk on a home loan.
Related guides
Reviewing Rental Statements for Investment Lending
How to review rental statements for investment property loan applications. What managing agents report and how to verify rental income.
Assessing Rental Income for Investment Lending
How to assess rental income for Australian investment property loans. Shading, vacancy, and mid year rental timing.
Reviewing Existing Home Loan Statements
How to review existing home loan statements for refinance and top up applications. Balance, rate, repayment type, and redraw checks.
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