How to finance your first investment property

Published 29 Sep 2021 | Updated August 9th, 2023 3 min read by Property Ducks In the first few years of owning an investment property, the rental income you earn may not be enough to cover your mortgage repayments and running costs. It’s therefore important to understand what your cash flow will be before committing to the purchase of the property, so you’re confident you can cover any shortfall without running into financial stress.

During the pre-approval process, your mortgage provider will look at every aspect of your finances, including your income, any outstanding debt, your existing assets and how much your current lifestyle costs you.

This includes how much you spend on things like education, childcare, entertainment, travel and even groceries, so ensure you provide realistic estimates so they can determine your ability to service the loan more accurately.

Each bank and mortgage provider has slightly different products, interest rates and fees. That’s why engaging a mortgage broker can help you save time and money by sorting through the options, and providing recommendations that are best suited to your situation.

If this is your first investment property, having an expert set up the right financial structure from the start is essential.

Depending on your situation and the type of property you buy, you may also be eligible for government incentives.

Speak to our Property Ducks team to get you in contact with top rated mortgage brokers or financial advisers to find out if any apply to you.