What Are Investment Property Mortgage Rates Based On?
An investment property is one which is bought with the intention of making a profit rather than being primarily as a residence. This can include properties bought and then improved to increase their value, or those bought and then rented out to produce an income. There are several factors which affects investment property mortgage rates. While somebody getting a mortgage for a residential property must show proof of income from employment, an investor must show what income they expect to make from the property. An investor who has secured a reliable tenant paying more in rent than the mortgage repayment amount will likely get a better deal. Somebody buying a property to improve and sell will have a harder time securing a good rate unless they can prove they have the funds to make monthly payments in the meantime.
