Investment property loans, built around your strategy
We compare 60+ lenders for investors and show how rent, tax and the 2027 negative gearing change affect your loan.3 ptsBuffer lenders add when testing repayments
60+Lenders compared
Why buy an investment property in Australia?
Build long-term wealth
Rent covers part of the cost
Use equity to buy more
Tax deductions
A hedge against inflation
An asset you control
New build or established? The negative gearing change
(passed into law in 2026, starts 1 July 2027)
An established home
A new build, or a home held before
How lenders assess an investment loan
Investor rates
Rental income
Deposit and equity
Loan structure and tax
Repayment buffer
Interest only terms
Property or other investments?
(what is different, and what to weigh up)
Investment property
Shares and other assets
How we help you buy
your next investment property
30 minute investment strategy call
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Compare lenders and loan structures
2
Approval, settlement and beyond
3
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Why investors let us handle their finance
Investment property loan questions, answered
Can I use the equity in my home to buy an investment property?
Yes. If your home is worth more than you owe, a lender may let you borrow against that equity, usually up to 80 per cent of the home’s value less your current loan, without LMI. That amount can cover the deposit and costs of an investment property. We set the investment borrowing up as a separate loan split, because the purpose of the money, not the property it is secured on, decides whether the interest is deductible.
Should I choose an interest-only or principal and interest investment loan?
Interest only keeps repayments lower for a set period, which frees cash, often to pay down a non-deductible home loan first. The balance does not fall, and in August 2026 new interest only investor loans averaged 6.5 per cent against 6.3 for principal and interest (RBA). Repayments also jump when the period ends, and lenders assess you on those higher repayments. Principal and interest builds equity and costs less interest overall. Compare the two with the interest only mortgage calculator.
How does “negative gearing” work with my investment loan?
A property is negatively geared when its deductible costs, including loan interest, are more than the rent. Today that loss can reduce your other taxable income. From 1 July 2027, losses on established homes bought after 7:30pm on 12 May 2026 can only be carried forward against residential property income, not wages. New builds and properties held before that time keep the current rules. Ask your accountant how this applies to you, and see what rental income and losses do to your tax with our income tax calculator.
What is a “cross-collateralised” loan and should I avoid it?
Cross-collateralisation is when a lender uses more than one property as security for your loans, for example your home and your investment property. It can be simpler to set up, but it can limit you later when you want to sell one property or move one loan to another lender. We generally prefer stand-alone loans, each secured by its own property, so each one can be changed on its own.
Can I get an investment loan through my SMSF (Self-Managed Super Fund)?
An SMSF can borrow to buy property through a limited recourse borrowing arrangement, under strict rules. Fewer lenders offer these loans, and they usually want a larger deposit than for a personal investment loan. Whether an SMSF should buy property is a financial advice question, so speak to a licensed financial adviser and your SMSF accountant first. We can then arrange the loan.
How do lenders calculate “rental yield” when assessing my borrowing power?
Lenders add the expected rent to your income, but count only part of it to allow for vacancies, management and other costs. Each lender sets its own share, and some also differ on rent from new tenants or short stays. That is why the same investor can borrow different amounts at different lenders.
What is the 1% rule in property investing?
It is a rough screen from overseas: the monthly rent should be at least 1 per cent of the price. On a $600,000 property that is $6,000 a month, or a 12 per cent gross yield a year, which few Australian homes reach. It is more useful to work out the real cash flow: rent less interest, rates, insurance, strata, management and vacancy.
How much deposit do you need for an investment property loan?
Usually 20 per cent to avoid LMI. Some lenders accept less with LMI added, and equity in your home can supply the deposit. You also pay stamp duty: in South Australia it is $29,580 on a $650,000 property, on the same scale for investors as for home buyers. Our stamp duty calculator covers every state.
Can I borrow money against my investment property?
Yes, once it has equity, by increasing the loan or refinancing, subject to the lender’s assessment of your income. What you use the money for decides whether the interest is deductible: borrowing against a rental to fund a car or a holiday does not make that interest deductible. Our refinance page shows the costs of switching lenders.
What is the downside of using a mortgage broker?
A broker can only offer the lenders on its panel, and is paid a commission by the lender you choose. The law requires a broker to act in your best interests and to disclose that commission. Ask which lenders are on the panel and how the broker is paid. Our panel and commission ranges are in our terms.
How do the 2027 negative gearing changes affect investment loans?
The loan itself does not change. What changes is the tax result: from 1 July 2027, losses on established homes bought after 12 May 2026 cannot reduce tax on wages, so the after-tax cost of holding a loss-making property rises. Also from 1 July 2027, the 50 per cent capital gains discount is replaced by indexation of the cost base and a 30 per cent minimum tax, for gains that accrue after that date. New builds keep negative gearing.
Do investment loans have higher interest rates?
Usually a little higher. In August 2026 new investor variable loans averaged 6.4 per cent, against 6.2 for owner-occupiers, and investor loans above 80 per cent of the value averaged 6.8 (RBA). Your rate depends on the lender, your deposit and the loan type.
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