Unlock your Property Dreams with QCS

Secure Funding for Home Buyers, Renovators and Investors with the right Advice, Strategy and Financing Options

Whether you’re a first-time homebuyer or an experienced investor, we’re here to help you secure the funding you need for your property goals. With our expertise in investment home loans, financing investment properties, and home loans, we can guide you through the process and provide you with the tools and resources you need to make informed decisions.

Home Loan

We understand that purchasing a home is a significant financial decision, and we’re dedicated to providing you with the support and resources necessary to make informed choices. Our team will evaluate your financial circumstances, explore loan options, and guide you through the application process, ensuring a seamless and stress-free experience. Read more about Homeowner Finance.

Investment Loans

At QCS, we have a deep understanding of the unique requirements involved in financing investment properties. Whether you’re interested in purchasing a residential property or venturing into commercial real estate. Our team of professionals are fully prepared to support you in obtaining an investment home loan that aligns perfectly with your investment property requirements. We can provide you with competitive interest rates and flexible terms that are specifically tailored to meet your individual needs.

Investing in property can be a highly rewarding endeavour, and we are here to guide you through the intricacies of financing your investment. With our brokerage firm’s wealth of experience in financing investment properties, we have the expertise to navigate the process alongside you. Our first step is to assess your financial situation and gain a clear understanding of your investment goals. Based on this evaluation, we will present you with personalised financing options.

Our dedicated team will work closely with you to identify the most suitable loan structure, terms, and interest rates that best suit your investment property venture.

Marine Finance

What Home Loan Types are Available?

Loan Type

 
Variable rate loan with a variable-rate home loan, the interest rate fluctuates with market conditions, which means it can go up or down over the life of the loan.
Fixed rate loan With a fixed-rate home loan, the interest rate is locked in for a specific period, typically between 1-5 years. This offers stability since your payments stay constant, regardless of fluctuations in the market interest rate.
Interest only loan With an interest-only loan, you only pay the interest component for a certain period (usually 1-5 years). This can help reduce your initial repayments but does not reduce the principal amount.
Guarantor loan A guarantor loan involves having a family member, usually a parent, offer their property or savings as additional security for the home loan. This can help borrowers who may not have a sufficient deposit The guarantor becomes legally responsible for repaying the loan if the borrower defaults.
Low doc loan A low doc is designed for self-employed individuals or small business owners who may have difficulty providing traditional income documentation, such as tax returns or financial statements. Instead, borrowers are required to provide alternative documentation, such as bank statements or an accountant’s declaration, to verify their income.
Line of credit loan A line of credit loan allows you to access funds up to a specified credit limit. You can use and repay the funds as needed, like a credit card. The interest is typically variable, and you only pay interest on the amount you use.
Non-conforming loan A non-conforming loan, also known as a non-standard or specialist loan, is offered to borrowers who do not meet the standard lending criteria of traditional lenders. This may include individuals with a poor credit history, irregular income, or unique circumstances. Non-conforming loans typically have higher interest rates and stricter terms compared to standard home loans.

Self-Employed Home Loan

How Long must you be Self-employed to be Eligible for a Home Loan?

To obtain a self-employed home loan, QCS advises that most lenders require a minimum of 2 years of self-employment history. However, some select lenders may consider individuals with just 6 months of self-employment experience. If you have been self-employed for less than a year, the options become limited since many banks require tax returns as proof of income and perceive new businesses as having higher financial uncertainty. Fortunately, QCS works with many lenders who can approve loans for individuals with less than two years of self-employment financials if they have been in the same industry for a substantial period and can provide at least one year’s financial statements for their new business.

How do Lenders Calculate your Self-Employed Income

How lenders calculate your self-employed income can vary depending on their specific policies and criteria. QCS understands that different lenders have different approaches when assessing self-employed borrowers. When reviewing your income, some lenders may focus on the lowest income figure from the past two years, while others may consider the most recent year’s income as stated in your tax return. Alternatively, certain lenders might average the income from both years. Additionally, lenders may or may not add back expenses shown on your tax returns. In some cases, lenders may accept alternative documentation such as six months’ BAS and a letter from your accountant instead of requiring tax returns and financial statements. QCS can help you navigate these varying lender requirements and find the best fit for your self-employed home loan needs.

What is an ‘Add Back’?

Your taxable income alone does not necessarily reflect the actual income available for your financial commitments, including mortgage repayments. QCS understands this, and that’s why lenders consider adding back certain expenses that have reduced your taxable income but are not ongoing commitments or “real expenses.” By adding back these expenses, your assessable income and borrowing power can increase. Here are some examples of add-backs:

Depreciation  Although depreciation is a tax deduction, it is not a day-to-day expense. Therefore, some lenders add it back to your taxable income.
Asset write-offs  We can typically add back tax write-offs for business assets purchased, such as the full write-off for assets used before June 2020 or the $150,000 instant asset write-off schemes announced during the 2020 federal budget.
Additional superannuation  Lump-sum contributions made to superannuation above the minimum Super guaranteed requirements can be added back.
One-off expenses  extraordinary expenses can often be added back, usually with confirmation from an accountant.

At QCS, we understand the intricacies of self-employed income and can guide you through the process of maximising your borrowing power based on these add-backs.

Will I qualify for a Loan?

Qualifying for an investment loan can be complex, especially if you need to demonstrate negative gearing benefits as proof of affordability. Investment loans carry higher risk compared to standard home loans, so it’s important to be in a solid financial position to meet the criteria.

Property Investment Guide

Creating wealth through Property 

As a property investment guide, here are some steps to consider:

Goal Setting

Clearly define your investment goals. Determine whether you aim for capital growth, income, or a combination of both. QCS can help align your goals with suitable investment strategies.

Financial Assessment

Evaluate your current financial situation, including income, expenses, assets, and liabilities. QCS can assist in determining your borrowing capacity and affordability.

Loan Pre-Approval

Work with your QCS finance broker to obtain loan pre-approval. This step will help you understand your borrowing capacity and make informed investment decisions.

Property Research

Conduct thorough research on potential investment properties. Consider factors such as location, rental demand, growth potential, and projected returns. QCS can provide market insights and property data to aid your decision-making process.

Loan Selection

With the help of QCS, choose a suitable investment loan that aligns with your needs and financial goals. They can guide you through various loan options, interest rates, repayment terms, and associated costs.

Loan Application & Documentation

QCS will assist you in completing the loan application and gathering the necessary documentation, such as identification, financial statements, and property information.

Loan Approval & Settlement

Your QCS finance broker will liaise with lenders, handle negotiations, and help secure loan approval. They will also oversee the settlement process, ensuring a smooth transition.

Ongoing Support

QCS can provide ongoing support and advice regarding loan management, refinancing options, and any future investment strategies you may consider.

Remember, property investment involves risks, and it’s crucial to consult with our professional QCS finance brokers, who can provide personalised guidance based on your individual circumstances and goals.

Increase your Borrowing Capacity

To enhance your borrowing capacity, follow these simple suggestions:

  • Seek advice on structure and type of investment property.
  • Decrease your credit card limits.
  • Consider applying for loans jointly with your spouse to utilise your combined income.
  • opt for positively geared investment properties.

 

Different banks have varying approaches to assessing investment property loans. This can either increase or decrease your borrowing capacity based on your circumstances.

Rental income: Most banks consider only 80% of your rental income in their assessment, while some banks use the full 100%.
Other income: While all banks evaluate your base salary similarly, they differ in assessing overtime, bonuses, commission, allowances, trust distributions, dividends, and self-employed income.
Existing Debts: Certain banks assess the repayments on your existing debts using principal and interest (P&I) repayments, even if you’re currently paying interest only. This can be challenging for investors with larger portfolios who may struggle with P&I repayments on all their debts.
Negative Gearing: Not all lenders consider negative gearing benefits. If your portfolio is not positively geared, it’s essential to find a lender who includes these benefits in their serviceability calculation.

 

At QCS, we have in-depth knowledge of which lenders are likely to approve your loan. However, we prioritise responsible borrowing and will not assist you in obtaining an investment loan if we believe it will place you in financial difficulty.

Turn your property dreams into reality with Queensland Capital Solutions. Whether you need an investment home loan, financing for investment properties, or a home loan, we’ve got you covered. Utilise our home loan repayment calculator and mortgage calculator to plan your repayments.

Contact us now and let us guide you through the process of securing your ideal property with our tailored financing solutions.

FAQ

How much deposit do I need to buy a home or investment property?

Having a deposit ranging from 5% to 10% of the property’s purchase price when applying for a home loan. However, saving a larger deposit can significantly enhance your chances of loan approval.

By saving a deposit of 20% or more and borrowing less than 80% of the purchase price, you can avoid the need for mortgage insurance. This can result in substantial savings, potentially amounting to thousands of dollars.

A larger deposit translates to a smaller loan amount, which in turn leads to lower interest payments. Over the loan term, even a slightly larger deposit can accumulate significant interest savings, potentially saving you thousands of dollars in the long run.

How does rental income affect my borrowing capacity for an investment property?

Lenders have varying policies when it comes to accepting a percentage of projected rental income based on the type of property being purchased.

Typically lenders accept:

  • 80% of the rental income for residential properties.
  • 70% of the rental income for inner city apartments, although this can differ among lenders.
  • 60% of the rental income for commercial properties.

In the case of serviced apartments, lenders generally assess loan applications on an individual basis.

Furthermore, if you’re living with your parents and renting out a property, lenders may consider including notional rent, which is the minimum expected rental price for your property. It’s important to consult with QCS or a qualified mortgage broker to understand the specific criteria and requirements regarding rental income assessment for your situation.

Can I buy a property if I have existing debts, such as a car loan or credit card?

Yes, but existing debts impact your borrowing capacity. Lenders assess your debt-to-income ratio, affecting the amount you can borrow for a property.

How does my employment status affect my eligibility for a home loan?

Stable employment enhances eligibility. Lenders prefer consistent income, increasing confidence in your ability to meet mortgage obligations.

Can I buy an investment property if I already own my own home?

Yes, owning a home doesn’t preclude buying an investment property. Lenders evaluate your financial position to determine eligibility for additional loans.

How does the property's location affect my loan application?

Property location influences loan approval; factors like market trends, property value, and local economic conditions impact lender decisions.

Get in touch with us

At QCS we understand the importance of being flexible so we give you the power to set your own appointment. Monday to Saturday from 7am to 7pm.

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