Investment property loans provide the essential funding you need to make your next move and enter the property market. It is a good option if you are purchasing or refinancing a property for investment, as the finance cost is a tax deduction. With accessible finance and loan options curated to your situation, you can make property investment a profitable venture.
Borrow from $500,000 to $10M
Up to 70% LVR
Why borrow with us?
Want a lender who understands your situation? As a boutique private lender, Sparrow Loans can offer flexible and commercial solutions tailored for you. You’ll also work with our passionate and dedicated team.
Terms are tailored to your loan to value ratio (LVR) and the commercial edge of your deal. Access better rates and loan terms when you have a lower LVR.
Unlike the banks, Sparrow Loans can settle fast. We can work to a much faster timeline so that you never miss a deal and seize the best opportunities as they arise.
We prioritise borrowers
ResponsivenessWe assess your application quickly and give you an answer within 2 business days.
Full SupportFor brokers and direct borrowers, you will always work with a dedicated relationship partner.
TrustEnjoy a smooth application process and know when your funds will settle.
Why invest in property?
Investing in property can be a great way to build equity and diversify your asset portfolio. Property is a stable long-term asset which tends to appreciate over time. You can benefit from capital appreciation if you decide to sell later on, and get extra financial benefits through taxation and gearing. If you think an investment loan might be right for your business now or in the future, book a call with us and see how we can assist you.
Property investment requires prudent planning
Getting familiar with property finance.
Property loans provide the essential funding you need to make your next move and enter the property market. It is a good option if you are purchasing or refinancing a property for investment, as the finance cost is a tax deduction. With accessible finance and loan options curated to your situation, you can make property investment a profitable venture.
How borrowers can approach deposits.
With your deposit, you will generally need 30% of the property’s total value to access a private property loan. However, if you don’t have the 30% deposit amount, you could consider additional security to guarantee the loan or choose to pay Lenders Mortgage Insurance if it is an available option. The latter option would mean you accept higher repayments for a lower upfront deposit amount. Investors may also use the equity from their existing property to buy the next one. This can be up to 70% of the property’s current value minus the amount owed on the mortgage.
Managing your serviceability in the long term.
As rates rise, lenders may be more hesitant to fund highly leveraged borrowers and tighten their criteria. You must account for future costs and consider your serviceability if rates change.
Easy to apply private loans - approval in only 2 business days!
Frequently Asked Questions
Our loans are priced competitively to give your deals a commercial edge. Our loans start at 9.95% p.a. but the rate you pay will depend on your situation. As a general rule of thumb, borrowers with higher LVRs and more complicated exit strategies pay more.
Even if a property loan is more expensive than what you anticipated, it might not be a bad thing. If it is not your primary residential residence, any expenses can be accounted for as a tax offset. As a result, even lost capital on the property due to cost overruns can work in your favour through negative gearing. Australia's tax system is set up to support investment which makes your decision to purchase an investment property easier.
Taking out a property loan can be risky, so make sure you are confident with your property strategy as you may be required to cover any shortfalls when refinancing your loans when the market experiences downturns.
If you are looking for a property loan or think one might be right for you in the next 12 months, contact us today. Sparrow Loans is a Sydney-based private lender specialising in commercial or investment property loans, property-backed business loans, and bridging loans.
Sparrow Loans offers 48 hour approvals and fast settlements, so you never miss a deal.
Sparrow Loans offers flexible and practical solutions for borrowers. You can arrange additional repayments on your investment property loan by contacting us.
You can choose your minimum loan term to match the length of time that you require the loan. This can be as little as 1 month. Sparrow Loans prides itself on thinking commercially, so we can make any solution work for you.
Yes, you will require a valuation from a valuer that is on our panel. Please let us know if you have already obtained a valuation from another valuer prior to applying for a loan with us. If we are able to utilise your existing valuer, we will do so.