An investment property loan is a mortgage designed for purchasing income-producing properties. These properties can be used to generate rental income or renovated and sold for profit.

When purchasing an investment property, most lenders require a minimum deposit of 20%. Instead of saving up for years to accumulate this amount, you can leverage the equity in your existing home to secure the necessary funds. By using a home equity loan as your deposit, you can enter the investment property market sooner and potentially grow your wealth through rental income and capital appreciation.