Compare investment property home loan rates

Looking for a home loan for your investment property?
Compare some of the lowest investor home loan rates, fees and features in Australia.

Brooke Cooper
Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.19% p.a.
6.58% p.a.
$2,589
Principal & Interest
Variable
$0
$530
90%
Featured 90% LVR
  • You MUST already have Solar or a documented plan to install within 90 days to be eligible for this loan
  • Available for refinance or purchase
  • No monthly, annual or ongoing fees
6.29% p.a.
6.20% p.a.
$2,473
Principal & Interest
Variable
$0
$0
80%
6.34% p.a.
6.36% p.a.
$2,486
Principal & Interest
Variable
$0
$350
60%
6.24% p.a.
6.46% p.a.
$2,460
Principal & Interest
Variable
$15
$250
60%
6.29% p.a.
6.57% p.a.
$2,473
Principal & Interest
Variable
$299
$299
80%
6.29% p.a.
6.65% p.a.
$2,473
Principal & Interest
Variable
$390
$0
60%
6.34% p.a.
6.69% p.a.
$2,486
Principal & Interest
Variable
$395
$0
70%
6.34% p.a.
6.37% p.a.
$2,486
Principal & Interest
Variable
$0
$645
80%
6.34% p.a.
6.35% p.a.
$2,486
Principal & Interest
Variable
$0
$0
80%
6.29% p.a.
6.30% p.a.
$2,473
Principal & Interest
Variable
$0
$180
80%
6.39% p.a.
6.37% p.a.
$2,499
Principal & Interest
Variable
$0
$0
60%
Automatic rate-match*
  • $0 Athena fees. Seriously, zero Athena fees
6.39% p.a.
6.73% p.a.
$2,499
Principal & Interest
Variable
$350
$210
70%
6.39% p.a.
6.45% p.a.
$2,499
Principal & Interest
Variable
$0
$835
80%
6.39% p.a.
6.53% p.a.
$2,499
Principal & Interest
Variable
$10
$450
80%
6.43% p.a.
6.44% p.a.
$2,510
Principal & Interest
Variable
$0
$0
60%
6.84% p.a.
7.16% p.a.
$2,726
Principal & Interest
Variable
$0
$0
80%
7.04% p.a.
6.85% p.a.
$2,347
Interest-only
Variable
$0
$160
60%
7.26% p.a.
6.96% p.a.
$2,420
Interest-only
Variable
$0
$200
60%
7.29% p.a.
7.26% p.a.
$2,430
Interest-only
Variable
$8
$0
70%
6.99% p.a.
7.00% p.a.
$2,659
Principal & Interest
Variable
$0
$230
70%
Featured
  • Available for Purchase and Refinance. No application fee and no settlement fee
  • No monthly, annual or ongoing fees
  • Access your SMSF loan via our easy-to-use online app Smart Money
More home loans
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of .

July Investment Home Loan Rates Top Picks

As property investors should be acutely aware, a competitive home loan deal can make the difference between a successful investment and an unsuccessful one.

With investment loan rates still at multi-year highs and little reprieve from the RBA seemingly on the horizon, it's more important than ever to keep shopping around to find the lowest rate available.

Here are some of the lowest variable rates on investment loans in our database for this month at the time of writing.

Best investment home loan rates from our database.

Brand

Product

Repayment type

Advertised rate % per annum

Comparison rate % per annum

Pacific Mortgage Group

Standard Variable Investment Loan - LVR ≤80%

Principal & interest

6.14%

6.14%

Regional Australia Bank

Mortgage Offset Investment Loan - LVR ≤60%

Principal & interest

6.18%

6.21%

Australian Mutual Bank

GumLeaf Standard Variable Investment - LVR ≤60%

Principal & interest

6.19%

6.26%

Loans.com.au

Solar Investment Loan - LVR ≤90%

Principal & interest

6.19%

6.58%

G&C Mutual Bank

Momentum Investment Loan Special - LVR ≤60%

Interest only

6.30%

6.32%

Rates correct as of 1 July. Rates may differ to comparison table above.

Property investing is one of Australia’s most popular strategies for building long-term wealth.

The latest data suggests around one in five taxpayers – more than two million Aussies – own an investment property.

One of the reasons investing in property may be preferred over investing in other asset classes – such as shares or cryptocurrency – is the ability for an investor to leverage to enter the market.

Most investors can borrow between 80% and 95% of a property’s value from a lender. This means a person investing in the property market can typically hold a more substantial portfolio while putting forward less capital upfront compared to another investor entering a different market.

It also means investors can feasibly benefit from higher returns and leverage equity built in their properties to further expand their portfolio.

In essence, a competitive investment home loan can act as a secure ticket to a thriving property portfolio. Though, no investment is ever guaranteed to provide returns.

What is an investment mortgage?

Whether you’re purchasing your first investment property or your fifth, you’re probably going to need an investment home loan to get you there.

Investment home loans are a type of loan that allows investors to purchase a property with the sole purpose of making money off it, through rental income, capital growth, or both.

Here are the major differences between an investment home loan and an owner-occupier home loan:

  • Higher interest rates
    Investment home loans typically have slightly higher interest rates than owner-occupier home loans, largely because lenders consider them a higher risk

  • Lower maximum LVRs
    Investment home loans generally have a lower maximum loan-to-value ratio (LVR), often capped at 90% with Lenders Mortgage Insurance (LMI), whereas owner-occupier home loans generally have a maximum LVR of 95%

  • Stricter terms and conditions
    Investment loans may come with stricter lending criteria and additional conditions compared to owner-occupier loans due to the perceived higher risk

  • More repayment options
    Investment home loans may offer the option to make interest only repayments for a period, which is less common for owner-occupier loans

  • Additional tax benefits
    Investors can typically deduct the interest portion of home loan repayments and other expenses related to the investment property from their taxable income

4 tips to help you compare investment property home loans

Investment properties can be great financial assets, especially when an investment is throughly planned and considered.

Strategising can start with choosing the best investment home loan to buy a property. After all, the mortgage product you end up with will have a major impact on the cash flow and overall viability of your investment.

When hunting for the best deal, it is a must to look beyond a home loan’s advertised interest rate. A home loan offer may have a lower interest rate, but it might not provide enough flexibility for you to play your cards your own way.

Here are four tips to help you compare investment home loans:

1. Take note of the interest rate

Investment home loan interest rates are generally higher than owner occupier rates, but that doesn’t mean there aren’t competitive deals to be found.

A lower interest rate means lower repayments. If you’ve got an interest only loan, that interest is tax-deductible, which could make your loan even cheaper overall!

If you’re unsure of the impact a slightly higher or lower rate could have on your finances, Your Mortgage’s Mortgage Repayment Calculator could prove a useful tool.

2. Pay attention to any fees and charges

Mortgage fees on investment home loans are generally tax deductible, but it's still important to look for an investment loan with low or no fees where possible.

This is why it’s worth considering a home loan’s comparison rate as well as the interest rate. The comparison rate factors in fees, extra charges, the impact of interest-only periods, and other considerations.

3. Consider the loan features on offer

Some investment home loans are feature-rich and offer plenty of potential benefits, while others are comparatively basic. Typically, feature-rich home loans come at a higher cost than their basic counterparts, whether through a higher interest rate or greater fees.

Savvy property investors should consider which features they would make use of and which would be wasted on them.

Features commonly offered on investment home loans include:

    4. Determine the best rate and repayment options for your needs

    You need to consider whether you want a fixed or variable loan, as well as the repayment type – principal and interest or interest only?

    Which option will best suit you will depend on your investment strategy, risk tolerance, and your expectations of the broader economy.

    Fixed vs. variable interest rate

    The repayments on a fixed rate home loan won’t change over the fixed rate period, which typically spans between one and five years. On the other hand, the repayments on a variable interest rate home loan can fluctuate. However, variable rate home loans generally allow unlimited repayments and other features not commonly offered on fixed rate mortgages.

    Repayment type

    In addition to choosing between a fixed or variable rate, an investor will need to decide whether they want to make principal and interest or interest only repayments.

    A person making principal and interest repayments will reduce the amount they owe to their lender with each repayment. Some investors choose to make interest-only repayments, however, because the interest paid is tax deductible. They might also expect to sell their property for a capital gain later on and therefore place less value on reducing their debt.

    How to get an investment home loan

    Applying for an investor home loan is very similar to applying for any other kind of home loan.

    The lender will want to get a full picture of your financial situation. You’ll need to ensure you provide it with the means to go over your credit history, bank statements, income, expenses, assets and debts, and any other relevant factors with a fine tooth comb.

    Here are some important things to note when applying for an investment home loan:

    • You’ll probably need a deposit of at least 10%
      Low-deposit investor home loans are rare and you’ll often need to stump up a deposit of 10% or more of a property’s value and, if you don’t have a deposit of at least 20%, you’ll likely have to pay for LMI.
      The deposit can be made up of savings or the equity you own in another property.

    • Higher interest rates
      Investor home loans usually have higher interest rates than owner occupier loans.
      This is because investment loans are generally thought to be a riskier prospect for a lender to enter into.

    Because lending rules are generally stricter for investment home loans, investors will need to prove they earn enough to cover the cost of repayments.

    Income from certain sources, such as rent from other investment properties, is typically included in income assessments. However, some lenders might only consider a portion of such income, as it is often deemed less reliable than a wage or salary.

    In good news, a lender will generally consider the rental income you hope to receive after purchasing your investment property in serviceability tests, although it might not factor in the full amount you expect to receive.

    The first steps to Property Investment

    New to property investment? Setting clear financial goals, understanding your budget, and choosing a suitable home loan with manageable rates is key to the property investing journey.

    It could be wise to seek guidance from beginner-friendly lenders, focus on properties in growth areas, and learn the basics of market trends.

    Practice patience and research thoroughly as you start your investment journey.

    Helping you choose the right investment home loan

    When selecting a loan for real estate investment, it could be worth prioritising features tailored for investors.

    Proper understanding of the mortgage market can make comparing home loan options easy, allowing you to make a straightforward choice that aligns with your investment objectives.

    Redraw facility & Offset Accounts

    Repayments

      Strategies for Advanced Property Investors

      Advanced property investors might choose to use existing property equity for new ventures or turn to commercial loans.

      Diversification across property types and locations can be a worthwhile risk management strategy.

      Experienced investors will likely be well versed in keeping an eye out for value-add opportunities, staying updated on market trends, and maintaining a strong network.

      The best likely use advanced analytics and tax-efficient strategies to ensure a robust portfolio.

      Frequently Asked Questions

      If you already own a property (or a few) you might be able to use the equity in your existing asset as a deposit on another investment property. The current property may then become a security on the new debt.

      Investment home loans generally have higher deposit requirements than owner occupier mortgages.

      Typically, you’ll need a deposit of at least 10% to take out an investment home loan, and most lenders will demand an investor pays for Lenders Mortgage Insurance (LMI) if their deposit is less than 20% of their property purchase.

      Capital gains tax exemptions are only available to those selling a property that served as their principal place of residence. Since investment properties are used to generate income, it will not qualify for any exemptions.

      However, there is a special rule that exempts a rental property if it is sold within six years of being converted from a principal place of residence to an investment. Take note, however, that this exemption will only hold if you don’t own another main residence during the time the property is rented out.

      While you generally can’t avoid capital gains tax when selling your investment property, you can definitely employ strategies to minimise it.

      The best way to minimise your CGT is to keep accurate records so you can claim for more in your cost base. Any capital costs you incur would be added to your cost base, which will substantially lessen the capital gains taxable.

      Furthermore, if you maintain ownership of the investment property for at least 12 months prior to selling, you'll automatically receive a 50% discount on capital gains tax.

      Owning an investment property entitles you access to a range of tax deductions that can lower the amount of income tax you’re liable to pay.

      According to the Australian Taxation Office (ATO), landlords can claim deductions on their rental properties during periods when it was tenanted or genuinely available for rent.

      Some of the expenses you can deduct include property taxes and insurance, mortgage interest, management fees, council rates, and repair costs.

      This checklist of expenses will show you which costs you can claim when you file your annual taxes.

      Investing in property can be financially rewarding. But like any investment strategy, it has its own benefits and drawbacks.

      One of the biggest upsides of property investing is the steady flow of passive income it can provide, in the form of rental income. In many cases, particularly in the later-stages of long-term investments, an investment property can pay for itself, as rental income can be used to settle mortgage payments and other expenses.

      Property investors can also take advantage of tax benefits, allowing them to maximise their returns.

      Overall, investing in property is a long-term investment strategy. As time goes, an investor might be able to improve their cash flow and build the funds needed to expand their portfolio.

      However, the biggest drawback of investing in property is its high entry cost. A mortgage deposit can cost thousands of dollars, and other trading costs include stamp duty and legal fees.

      Furthermore, property is not as liquid as other asset classes like stocks. It can take a long time to sell property, which can be detrimental to an investor who needs quick access to cash.

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