Owner occupied Home Loans Vs. Investment Home Loans 

Owner occupied Home Loans Vs. Investment Home Loans 

Firstly the difference between both is on the LVR, investment home loans usually require a much lower LVR--meaning higher deposit requirements.

Secondly, interest rates for investment home loans may be relatively higher than that of a regular home loan. Several years ago the government implemented a strategy to slow down investment growth by having banks and lenders add additional servicing rates to home loan interest rates. This was effectively done to contain the market but in recent times this is being relaxed by trying to temper the effects of covid.

When’s the best time of the year to purchase a property for investment?

Whenever you feel you have identified a location or market niche that you feel is going to be stable and provide you an investor return relative to the growth of an asset and potentially a low level of gearing which can give a positive effect on your annual tax return.

Where should you buy a property?

Availability to key transportation going to and from the property you are buying,Shopping, schools, employment opportunities and recreational spaces and areas key considerations when identifying suitable property locations.


The estimated valuation of the property you are eyeing to value based on the location/neighborhood. There can be some considerable differences between what people feel the market is and what a bank appointed valuer considers a property to be worth.

Market health

Understanding the relationship between demand and supply as this will determine the price of the property. Specific particularly in challenging times-pandemics, financial crises all play a role, even local events around weather or job losses in a specific industry can have deleterious effects on the health of a market.

On-going or future developments happening within a particular neighborhood. You can search lodged development applications in a particular area/neighborhood And some software allows piscina development approval and building applications applied to local housing estates and in more established suburbs even specific homes within a street, ask us more about these if you're interested.


There are specific loan types ideally designed for investment purposes. And often these will be relative to your particular circumstances.

Some prefer interest only in the interim as they don't want the loan balance to reduce until the property or asset is ready to be sold and potential profit realised. And other people prefer to take a principal and interest mortgage and therefore pay down their loan balance and increase their equity position.

Darin Hindmarsh is the founder and CEO of Intellichoice Finance, a broking firm based in Brisbane, where he specialises in owner builder loans. He's been providing financial and broking services in the past 18 years. Hindmarsh is also finalist in the 2020 Australian Mortgage Awards - Pepper Money Broker of the Year – Specialist Lending. To jumpstart your home loan application, visit their home loan online application page today. Like and follow them on their Twitter and Facebook accounts.