When it comes to investment properties, getting the right finance in place can make all the difference. That’s why I sat down with Neet, an experienced mortgage broker from The Mortgage Supply Co, to chat about what landlords and property investors in New Zealand need to know in today’s market.
With a wealth of industry knowledge and a reputation for going the extra mile, Neet and her partner Eddie have helped countless clients secure finance tailored to their long-term goals. In this interview, we dive into everything from choosing the right loan structure to approval process and servicing — and why working with a mortgage broker can give investors a serious edge.
Loan Products & Lending Options
What are the best loan options currently available for property investors? The best options often include interest-only loans for maximising cash flow, split loans for rate flexibility, or revolving credit facilities for access to funds. The right loan depends on your goals—whether it’s long-term hold, renovation, or fast portfolio growth.
What’s the difference between an investment loan and an owner-occupier loan in terms of rates and conditions? Investment loans generally have slightly higher interest rates and stricter lending criteria. Lenders view them as riskier, so they may also require higher deposits and offer less flexibility with terms.
Should I go with interest-only or principal-and-interest repayments? Why? Interest-only repayments reduce your monthly outgoings and free up cash—ideal for growing a portfolio or managing renovations. However, principal-and-interest helps you pay off the loan and build equity. The right choice depends on your financial goals and time horizon.
Is it better to fix my interest rate, float it, or split the loan? Fixed rates provide stability and protection from market rises, while floating rates allow flexibility and early repayments. Splitting your loan gives you a balance of both—part certainty, part flexibility.
What lenders are currently most investor-friendly in terms of deposit requirements and policies? Some non-bank lenders and second-tier banks are more flexible with deposits and income criteria. They may accept lower deposits or consider different income types, especially useful for seasoned investors or self-employed borrowers.
Deposit Requirements & Equity Use
How much deposit do I need for an investment property? Most banks require at least a 35–40% deposit due to LVR (Loan to Value Ratio) restrictions for investors. However, some exceptions apply through non-bank lenders or if you’re buying a new build.
Can I use equity in my home or other properties to fund another purchase? Yes. Equity in existing properties can often be used as a deposit for your next investment—this is how many investors grow their portfolios without needing extra cash.
What’s the process for releasing equity, and how is it assessed? We start with a property valuation, then calculate usable equity based on your current mortgage and the lender’s LVR rules. If serviceability stacks up, equity can be released via a top-up or refinance.
Are there any LVR (Loan to Value Ratio) restrictions I need to be aware of? Yes. For most investors, the Reserve Bank caps lending at 60–65% of a property’s value. These rules vary depending on whether it’s an existing property or a new build.
Loan Structure & Risk Management
Should I have separate loans for each property or cross-collateralise them? Separate loans (standalone securities) are usually safer—they offer more flexibility and reduce risk if you need to sell or restructure. Cross-collateralisation can tie your properties together, limiting options.
How do I structure lending to protect my personal assets or home? Keeping investment and personal lending separate is key. You can also explore using a trust or company structure to add layers of protection, especially as your portfolio grows.
What’s the best structure for tax efficiency—personal name, trust, company? There’s no one-size-fits-all. Owning under a personal name is simpler, but trusts and companies can offer tax advantages and asset protection. It’s best to work with a mortgage adviser and accountant together.
What happens if interest rates rise significantly? How can I prepare for that risk? You can manage this by fixing part of your loan, creating a buffer in your cash flow, and reviewing your strategy regularly. Planning ahead is key to long-term stability.
Approval Process & Servicing
What income do lenders use to assess borrowing power on rental properties? Banks typically use your regular income (salary, self-employed income) and a percentage of the rental income—usually 70–80%—to account for vacancies and expenses.
Can I use projected rental income for a property I haven’t bought yet? Yes. Lenders accept rental appraisals from property managers or agents as proof of projected income, especially for new purchases or builds.
How are rental expenses factored into my borrowing capacity? Lenders apply standard estimates for rates, insurance, maintenance, and sometimes property management fees, which are deducted from your rental income during servicing calculations.
What’s the typical turnaround time from pre-approval to unconditional? Pre-approvals can take 3–10 working days depending on the lender and complexity. From there, unconditional approval after signing a Sale & Purchase agreement can take another 5–10 days.
Refinancing & Growth Strategy
Can you help me refinance to access better rates or equity? Yes—we review your current structure and lender, then compare options across multiple banks to find a sharper rate or release usable equity for your next purchase.
How soon after purchasing can I refinance or restructure? You can usually restructure after 6–12 months or sooner if the property has increased in value. Timing depends on market movements and your loan type. Refinance can be done between 3- 4 years, depending on the lender policy.
What’s your advice for growing a portfolio—how do I set myself up to keep buying? Focus on maximising equity, maintaining clean loan structures, and staying on top of your lending limits. Regular reviews and a clear plan will keep you in a strong position to buy again.
How do you help investors plan lending around their long-term goals? We align your loan structure with your strategy—whether it’s capital gains, passive income, or long-term holds—and work with your accountant or lawyer to get it right from the start.
Fees, Support & Service
Do you charge a fee or are you paid by the bank? Our service is usually free for you—we’re paid by the bank once your loan settles. We’ll let you know upfront if any fees apply.
Which lenders do you work with? We work with a wide panel of banks and non-bank lenders, giving us flexibility to find what suits you best—not just one product or provider.
Can you help with structuring loans for trust or company ownership? Absolutely. We regularly work with investors using trusts or companies and can tailor your loan accordingly, in collaboration with your legal and tax team.
Will you assist with re-fixing rates, annual reviews, or changes after settlement? Yes. We stay in touch to help you manage rate renewals, top-ups, restructures, and future purchases—support doesn’t stop at settlement.
Get in touch with Neet, from The Mortgage Supply Co, today for any advice on investment mortgages. She knows her stuff!