Investors FAQs

Redraw is when you make additional payments above the minimum amount into your mortgage in order to reduce the interest calculated. These additional payments can be accessed, or drawn on at any time. Offset is when you hold these additional payments in a separate transaction account – you aren't reducing the balance of the loan but you're still getting interest reductions through the offset.

A Fixed rate Interest Only mortgage is where you pay 1 year of interest in advance so you get the benefit of claiming the interest in the previous financial year.

Principal and Interest are when you pay a portion of the balance in addition to the interest charged over an agreed period.
Interest Only is when you're paying the interest of the balance with no principal over an agreed period - The maximum period with ING DIRECT being five years. The key is to remember that interest payments on investment loans are 100% tax deductible whilst the principal payments on investment loans are 0% tax deductible. Unless your specific financial strategy has a different objective, this is a key point to keep in mind.

It's a revolving line of credit, lending a specific amount. This amount can be borrowed again once it has been repaid.

It means that for up to five years your repayments only cover the interest payable on your loan. At the end of this time you'll still owe the full amount that you borrowed. The advantage is that your payments are minimised during this time, so it's good for people borrowing for investment.

Call ING DIRECT on 1800 199 106 to speak with a Home Loan Specialist

To apply online you'll need your income details, present credit limits and obligations, and the amount you want to borrow.

Their How much can you borrow calculator will give you an idea of the type of information we need when you're ready to go ahead.

Provided you have equity in your existing property you can access extra money provided you meet the lenders credit criteria.

When the cost of owning your investment property exceeds the income it is earning you can negatively gear and get tax benefits. Your financial advisor can explain how it works in detail.