What is the difference in requirements for an investment home load opposed to an owner occupier?

The requirements for an investment loan are very similar to what is required for an owner occupied loan as you go through the same lending assessment process before a loan is approved.

All lenders require applicants to disclose what the investment loan is for, say an investment property, shares portfolio or business investment for example. Most lenders will ask for some sort of evidence especially if the funds are used for shares or a business investment.

If the loan is to buy an investment property the lender will, in most cases, be taking security over the property being purchased.

If you are looking to buy an investment property it is wise to check the lenders loan to value ratio (LVR) requirements as there has been some recent changes in how much a lender is prepared to lend against an investment property. Most lenders are around the 90% LVR – if you are looking at an off the plan purchase it might be as low as 70 -80%.

A lender will also be looking for evidence of how much rental income you will be receiving from the property. If it is a purchase then a letter from the real estate agent should suffice, if it is a refinance then an existing rental statement is all you need.

I hope this helps