Investment properties make a financial return so, depending on your circumstances, most lenders will lend up to 90% of the purchase price of an investment property. Lenders mortgage insurance may also be required. Some investors choose interest only loans as the interest payable is tax deductable and without repaying the principle, the overall repayment amount is lower.
If you have equity in your home, when the value of your property is higher than the loan amount, you can use your equity to invest as you wish. For example, if your property is worth $600,000 and your loan outstanding is $400,000, then you have $200,000 in equity which you can borrow against.
