Called the Smart Investor Home Loan, it consists of two separate loans, one directed at the residential home of the investor and the other at the rental or investment property or properties.
The aim is to let investors gain tax efficiencies by paying off the home loan first and foremost, James Lockie says.
“All payments are directed to repaying the home loan, on which in most cases the interest is not tax deductible,” Lockie says.
“The investment loan interest, which is tax deductible, is capitalised until the home loan is repaid in full.”
Typically someone buying their first investment home or a couple nearing the end of the period paying off their existing home and thinking of another property investment might be interested in the product, Lockie says.
“It’s really good for people say investing at age 55, when their own home is say debt-free by 65,” he says.
“It’s a sensible option for people of that sort of age. They’ve still got their investment property providing a yield and with the tax deductible interest on the other side.”
Most of Cairns Lockie’s prime home loans have been written with wholesaler Australian Mortgage Securities, but since October it has added Origin Mortgage Management Services, the wholesale arm of ANZ.
That has allowed Cairns Lockie to offer additional products, including the Smart Investor Home Loan. The usual fixed interest rates for home loans apply.
Another new Cairns Lockie product is the offering of “construction loans”, where the loan is drawn down in several tranches as a house gets built.
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