Otis Finance

Your loan questions, answered

How can I use an offset strategy to pay off my loan faster while still investing?

By placing surplus funds into an offset account, you reduce interest charged on your home loan. Investors often use this strategy to park savings while keeping them accessible for future investments — avoiding the need to redraw and potentially mix deductible and non-deductible debt. It’s a smart way to stay liquid while reducing interest.

How does property development finance differ from regular investment loans?

Property development finance involves staged funding, higher LVR restrictions, and often requires pre-sales or a feasibility assessment. It’s more complex than a standard loan and often requires a construction loan facility or a private lending solution. We can help you navigate the entire development process — from land acquisition to construction funding and exit strategies.

Can I borrow through a company or trust structure?

Yes, many investors choose to purchase property through a company or trust, especially for asset protection, estate planning, or tax flexibility. These structures can affect borrowing capacity and lending options, so it's essential to get advice from both your mortgage broker and your accountant before proceeding.

How can I use a family guarantee to buy property?

A family guarantee lets a close relative (usually a parent) use equity in their property to help you purchase a home — without gifting you cash. This can reduce or eliminate the need for a deposit or LMI. It’s a powerful option for first home buyers or young investors, but carries risks, so it's important all parties understand the structure and potential consequences.

What is a low-doc loan and who is it suitable for?

Low-doc (low documentation) loans are designed for self-employed borrowers who may not have traditional proof of income like payslips or tax returns. Instead, lenders accept alternative documentation such as BAS statements, bank statements, or an accountant’s letter. These loans often have slightly higher rates or stricter conditions, but can be a great solution for business owners.

How is commercial property finance different from residential lending?

Commercial lending usually involves higher interest rates, shorter loan terms, and a more detailed assessment process. It can be used for purchasing offices, warehouses, retail spaces, or even development projects. We’ll help you understand your options and connect you with lenders who specialise in commercial finance.

What is a sophisticated borrower and how is lending different for them?

A sophisticated borrower typically has significant assets, income, or investment experience. Lenders may offer tailored lending solutions, including higher loan amounts, interest-only terms, or specialised investment products. We work closely with you to structure finance in a way that suits your strategy and long-term goals.

What’s the difference between a fixed and variable interest rate?

A fixed rate stays the same for a set period (usually 1–5 years), providing certainty in your repayments. A variable rate can fluctuate with the market, potentially giving you access to lower rates and more flexibility — like extra repayments or offset accounts.

Can I refinance my current home loan to get a better deal?

Absolutely. Refinancing can potentially lower your interest rate, reduce your repayments, or give you access to equity for renovations or investment. We’ll review your current loan and compare it against hundreds of options to see what’s best for you.

Can I use my SMSF (Self-Managed Super Fund) to buy property?

Yes, you can purchase certain types of property through your SMSF under strict rules. This is a complex area, and you’ll need to work closely with your broker, accountant, and financial adviser to ensure it’s compliant and suitable for your goals.

What is cross-collateralisation and should I use it?

Cross-collateralisation is when multiple properties are used as security for one loan (or multiple loans with the same lender). While it can help maximise borrowing power, it also ties your assets together — which can limit flexibility and make refinancing or selling individual properties more complex. We can help you weigh up whether this strategy is right for your situation.

How does leveraging equity help me build wealth?

Leveraging equity involves using the value built up in your property (above your loan balance) to access additional borrowing capacity. This can help you acquire more investment properties without needing to save a traditional deposit. With each new property, you can generate more rental income and capital growth — accelerating your wealth-building journey. It's important to manage risk and ensure you have the right financial structures in place.

Can equity in an existing property be used in lieu of a cash deposit for an investment property?

Yes, you can use the equity in your existing property as a deposit for an investment property. This is a common strategy for investors looking to grow their property portfolio without needing to save a cash deposit. Your lender will typically allow you to access up to 80% of your current property’s value (minus any existing loan balance), and use that equity as security for your new purchase. It's important to speak with a mortgage broker to assess your borrowing capacity and make sure this strategy aligns with your financial goals.

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Your loan questions, answered

OTIS FINANCE

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About Us

Your loan questions, answered

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