An owner occupier will have different lending needs to that of a property investor. The owner occupier may be keen on taking years off their mortgage so they’ll pay some lump sums off the loan and they may also increase their monthly repayments. Their aim is to end up paying less interest on the term of the loan.
It’s not this clean cut either as owner occupiers also take out 30 year loans and often their decision is also based on affordability.
A property investor may wish to have a longer term on their loan so their repayments are less each month. Their aim is for the rental income to cover their property costs of which the loan will more than likely be the lion’s share.
With homes particularly in the Auckland region at record values, mortgages are also at record levels so the longer term of 30 years enables owner occupiers to secure bigger loans.
Property investors also like to take years of their mortgages and they will also pay off lump sums of the principle and when rents are increased they too may increase their monthly repayments.
To fully understand which path is best for you and your circumstances contact a professional mortgage broker like Kris Pedersen Mortgages.
Kris has a team of professional lending specialists who excel at providing financing solutions for their clients. Whether you’re a first home buyer, a property investor or looking for a better deal on your existing mortgage – contact Kris Pedersen.
This blog article was written for PropertyBlogs by Mobilize Mail.