A residential investment loan is for someone who wishes to borrow money to invest in the residential property market. As you might be aware the residential property market has seen significant growth over the past decade in Australia's major cities and that trend looks to continue in 2021.
These loans are treated at a higher risk by lenders when compared with owner occupier loans. This means that there are stricter lending requirements and higher interest rates attached.
As a borrower you must be able to demonstrate you can service the debt through your employment income and rental income. You will be required to have at least a 5% deposit of genuine savings plus extra for upfront costs including legal and stamp duty.