Question 1

How much equity can I release from an existing property?

Accepted Answer

Usable equity is generally 80 percent of the current valuation less what you still owe. A property valued at $900,000 with a $500,000 loan releases roughly $220,000 before costs, which usually covers a deposit plus purchase costs on the next property.

Question 2

How do lenders treat rental income when assessing my loan?

Accepted Answer

Most lenders shade gross rent to around 80 percent to allow for vacancy and costs, then assess your repayments at your actual rate plus a buffer of about 3 percent. Policy differs enough between lenders to change your capacity materially, which is why we compare rather than assume.

Question 3

Should I avoid cross collateralisation?

Accepted Answer

Usually yes. Tying properties together limits your ability to sell or refinance one without touching the others. We keep securities standalone unless there is a clear pricing or structural reason to combine them, and we explain the trade off if we recommend it.

Question 4

Is interest only worth it on an investment loan?

Accepted Answer

It can be, for cash flow and for keeping deductible debt intact. Terms typically run 1 to 5 years, and repayments step up once the interest only period ends. We model the post interest only repayment so the increase is never a surprise.

Question 5

Why does the order of my purchases matter?

Accepted Answer

Every lender reads existing debt differently, so using the wrong lender early can close off your next purchase. We sequence which lender is used at which stage, working backwards from the portfolio you want rather than optimising one loan at a time.

Question 6

How do I keep my loan splits clean for tax time?

Accepted Answer

We separate purposes into distinct splits so investment borrowings are never mixed with personal spending. Your accountant can then substantiate deductions from the loan structure itself. We are not tax advisers, so your accountant confirms the deductibility.

Question 7

What does Vairo Finance do for investment lending?

Accepted Answer

We keep purposes separated and clearly coded so your accountant can substantiate deductions, sequence which lender is used at which stage, and preserve capacity by avoiding cross collateralisation unless there is a clear reason for it.

Question 8

What do the numbers usually look like for investment lending?

Accepted Answer

Most investment lending sits at 80 percent of value to keep costs down, with up to 90 percent available where the yield and buffers support it. Lenders typically assess repayments at your rate plus a buffer of around 3 percent, and shade rental income to roughly 80 percent of gross rent.

Question 9

How much equity can I release from an existing property?

Accepted Answer

Usable equity is generally 80 percent of the current valuation less the existing balance. A $900,000 property with a $500,000 loan releases around $220,000 before costs, which is usually enough for a deposit plus purchase costs on the next asset.

Investment lending.

What we do

How the numbers usually look

Equity release

ADF pay, allowances and postings.