The lowest interest rate is always ideal, but emoney can guide you through what other features to look for when deciding which loan is best for your investor needs.

Interest Only (IO) – One of the more popular features is an offset account. It operates like a savings account that is directly linked to your home loan. Any money in your offset account reduces the interest charged on your linked home loan.

Principal & Interest (P&I) – The interest rate on P&I loans for investors is higher than it is for owner-occupiers, but lower than IO investment loans. With a P&I loan you start reducing the principal immediately. While your repayments may be higher with a P&I loan, you are paying off the principal and ultimately saving on interest repayment.

Line of Credit – A line of credit loan, gives you access to the equity in your property. You can draw, pay back and redraw the funds as many times as you like for various purposes. It can help you counter any shortfalls in rental payments over the term of your investment as well as give you access to funds to purchase your next property investment. Just remember to keep track of the funds you withdraw so you stay on top of the tax deductibility of your interest repayments.