Your selected home loans
Investment, LVR <80%
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
Read our Mozo Review to learn more about the Unloan Unloan Variable
Your selected home loans
LVR <70%
Enjoy a competitive rate on your SMSF home loan with Loans.com.au. Available for refinancers only. No application fee and no settlement fee. No monthly, annual or ongoing fees. Unlimited extra repayments. Online access via Smart Money App. 30% deposit required.
Enjoy a competitive rate on your SMSF home loan with Loans.com.au. Available for refinancers only. No application fee and no settlement fee. No monthly, annual or ongoing fees. Unlimited extra repayments. Online access via Smart Money App. 30% deposit required.
Read our Mozo Review to learn more about the loans.com.au SMSF Home Loan
Your selected home loans
LVR<60%, Investment, Principal & Interest
Competitive variable for investors with no monthly account keeping or ongoing annual fees. Unlimited additional repayments & option to redraw additional repayments as cashback.
Competitive variable for investors with no monthly account keeping or ongoing annual fees. Unlimited additional repayments & option to redraw additional repayments as cashback.
Read our Mozo Review to learn more about the Suncorp Back to Basics Special
Your selected home loans
Investor, Principal and Interest, LVR<80%
Affordable home loan rate for buyers or refinancers.. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 30% deposit required.
Affordable home loan rate for buyers or refinancers.. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 30% deposit required.
Read our Mozo Review to learn more about the loans.com.au Variable Investor Home Loan 80
Your selected home loans
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After the Reserve Bank of Australia held the cash rate at 4.35% for a fourth consecutive meeting, we haven’t seen a lot of movement on the average investment loan rate.
This month, the average investor rate in the Mozo database is 7.16% p.a. (Variable, P&I, $400k, <80% LVR), as at 8 April 2024.
For property investors looking for an interest-only loan, you’re looking at a database average of 7.44% p.a. (Variable, IO, $400k, <80% LVR), as at 8 April 2024.
However, with the outlook for inflation improving, you can expect investment home loan interest rates to come down soon after the Reserve Bank of Australia (RBA) cuts the cash rate later in the year, as some predict.
In the meantime, it can pay to compare investment home loans.
Not only can you compare interest rates, but you can also compare fees and features.
Take Unloan Variable, for instance. Unloan recently opened their books to new borrowers, removing their previous hard-and-fast rule of being a refinance-only lender.
Unloan offers investors a 6.29% p.a. (6.20% p.a. comparison rate*), free extra repayments and free redraw facility, no upfront or ongoing fees, and an annual rate discount of 0.01% (up to a max. discount of 0.30%).
While that might pique your interest, it’s worth noting that it doesn’t come with an offset account.
If you’re looking for an investment home loan with an offset account, which won’t cost you an arm and a leg, then that where comparing these products becomes important.
An alternative investment home loan that has similar features comes from Homeloans360.
The Homeloans360 Investment Variable Home Loan has an interest rate of 6.14% p.a. (6.14% p.a. comparison rate*), comes with an offset account, free extra repayments and free redraw facility, and has low fees (no upfront or ongoing fees, but includes a $300 discharge fee).
So it’s a matter of thinking about what you want the most, then going on to compare investment home loans to see of you can find it.
A handy way to work out whether the rates you’re looking at are competitive is to check out the lowest investment home loan rates as a reference. They won’t always be the right loan for you, but you can work out what to look for if you know where the best rates are.
Currently, the average variable rate for principal & interest investment loans is 7.16% p.a. in the Mozo database. Out of the offers we track, the lowest investment home loan rates (LVR < 80%, P&I, $400K) are:
For more information on property investing, browse our home loan guides for tips and tricks, including why investors pay more for a home loan.
Your first house doesn’t have to be your first home. Investment home loans help Australian borrowers purchase a property they don’t intend to live in.
From flipping houses to becoming someone’s landlord, investment home loans can help Aussies climb the property ladder by:
Choosing the right investment home loan is vital for real estate investors. Mortgages play a major role in upfront and ongoing property costs.
Mozo’s expert guides and calculators can help simplify the comparison process.
Investing in real estate can make it easier to finance a second property, such as another investment or your dream home. How? By using your home equity.
Your equity is the value of your ownership. If you own a property worth $1 million but have $200k left on your mortgage, then you have $800k in home equity.
Equity ($$) = Property value - loan value
If your loan size decreases or your property value increases, your equity rises.
Equity is a form of wealth you can use to fund projects, like a second property. How it works is you refinance your home loan to “borrow” from your equity, giving you some cash.
However, this tactic has pros and cons, so read more in the button below.
Every property investor is different, so matching the right home loan to the right borrower is essential. Comparing investment home loans is a crucial part of the property-buying process.
Which loan is right for you? It depends! Here’s how Mozo can help.
Investment home loans have higher interest rates than owner-occupied loans. Mozo’s comparison tool lets you filter, sort, and compare home loans.
Mozo’s expert judges review hundreds of investment home loans annually to crown the best of the best. Compare award-winners in the button below.
Mozo’s expert writers break down and explain the property market in simple languages – including investment and financial strategies.
The right investment mortgage balances features and costs with your property aims.
Only some people find their dream home right away. And that’s okay! Investment home loans let you access the benefits of owning property without living there.
Some perks of investing in property include:
The right investment home loan can make your investment profitable by cutting down on extra costs and accelerating your property journey toward full ownership.
Australian property is a relatively low-risk asset since property prices generally increase over time (a phenomenon called “capital growth”), though this will vary by location and property.
Property investors also get a host of tax benefits.
Consult a tax professional to see what you can claim on your taxes. Eligibility for deductions with vary by property investor.
Can your investment turn a profit? Crunch the numbers with Mozo's free mortgage calculators. See more
The application process for investment home loans is similar to all other loans. Once you choose a property and demonstrate serviceability through supporting documentation, you apply and get it approved by a lender of your choice for the loan amount you need to borrow.
You must give a home loan lender identity, financial, and property information in your investment application. This can include mortgage documents such as:
The main differences between owner-occupied and investment loans are lending criteria and cost.
Lenders consider investment mortgages financially risky because the borrower often relies on rental income. So, to protect themselves from missed or defaulted mortgage payments, lenders often slap investment loans with high interest rates and stricter lending criteria, such as a larger deposit.
Yes, you can refinance your home loan from an investment to an owner-occupied mortgage. You must meet eligibility requirements for your new home loan, such as having a good debt-to-income ratio and credit score and meeting minimum loan-to-value ratio (LVR) requirements.
How often you should review your investment home loan is up to you, but once a year is an excellent place to start. This way, you can check your interest rate to ensure it stays competitive, see if your mortgage repayments have changed, and calculate how much equity you’ve accumulated.
Negative gearing is when an investor loses more money maintaining a property than they make. Essentially, they return a loss.
Negative gearing can come with tax benefits since the interest payments lower the investor’s taxable income for the year while still accruing their wealth in home equity.
However, negative gearing can be financially risky – the investor will need enough cash to cover the temporary shortfall.
Too many negatively geared properties in one area can also tank property values, eroding the equity the investor needs to build wealth.
Learn what you need to know about investment home loans, including tips and traps, in our helpful guides. See all
Get the latest on property market trends, interest rates, and lending news from Mozo's expert writers. See all
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