Investor home loan rates sliding, but gap to owner occupiers persists

By Tom Watson · · 5 min read
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With the dust well and truly settled in the wake of back-to-back RBA cuts, it’s now clear that Australians with owner-occupier home loans aren’t the only beneficiaries. 

An analysis by Mozo has revealed that investors have also received partial rate cut relief, with the average principal and interest home loan rate in the Mozo database having dropped by 35 basis points since June 1. 

Interest-only investor home loans have fared even better, with lenders having cut rates by an average 37 basis points since the start of June. 

RELATED: Borrowers abandon Big 4 for challenger banks

On average, the drop means that an investor with a $300,000 loan (making principal and interest repayments over a 30 year term) will be $63 a month better off or $22,570 better off over the 30 year period.

“The RBA’s decision to cut 50 basis points off the official cash rate this year and the removal of the APRA cap on interest only loans has warmed up the paddles of life for property investors,” said Mozo Property Expert, Steve Jovcevski.

“It’s encouraging that as well as rate cuts for investors paying principal and interest, we’re seeing a downward movement on interest only loans. This time two years ago property investors were staring down average interest only rates of 5.12% and lenders were handcuffed around the volume of loans they could issue by the APRA cap.” 

The recent rate cuts have also sharpened some of the lowest rates currently^ in the Mozo database, with investors able to take advantage of a handful of principal and interest offers of 3.40% and below. 

Variable investor home loan rates of 3.40% and below^

LenderHome LoanPaymentsRate
Reduce Home LoansInvestor Rate SlasherPrincipal & interest3.19% (3.27% comparison rate*)
Well Home LoansWell BalancedPrincipal & interest3.27% (3.29% comparison rate*)
FreedomLendVariable Home LoanPrincipal & interest3.34% (3.34% comparison rate*)
HomestarVariable Rate LoanPrincipal & interest3.39% (3.44% comparison rate*)
State CustodiansLow Rate Home Loan with OffsetPrincipal & interest3.40% (3.41% comparison rate*)

The investor rate gap

Despite the recent rate shifts, the gap between investor home loan rates and owner occupier home loan rates remains significant. 

Following the RBA’s June and July cuts, the average owner occupier principal and interest home loan rate in the Mozo database currently^ sits at 3.99% (based on a $300,000 residential loan at 80% LVR) - a full 42 basis points below the average investor principal and interest home loan rate of 4.41%. 

The gap is less pronounced for interest-only loans though, with the average rate in the Mozo database for owner-occupiers currently^ sitting at 4.51% compared to 4.69% for investors. 

As the graph below shows, the difference in owner occupier and investor rates has ballooned significantly since APRA introduced an investor lending cap in February 2017.

“While this rate relief is welcome news for investors, compared to owner occupiers, they are still in the hurt locker. At a time when rental returns are under pressure, it’s still difficult to lay a solid foundation for investing in property,” Jovcevski said.

RELATED: First home buyer optimism at a peak: ‘perfect time’ to join the market

Looking to capitalise on the recent rate drop by refinancing or applying for a new investor loan? 

Check out some of the hot investment home loans in the table below or make your way over to the Mozo home loan comparison tables to compare even more offers. 
Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can compare more home loans here.
Last updated 23 July 2025 Important disclosures and comparison rate warning*
What are your home loan needs?
Loan purpose
Buying or Refinancing
  • Promoted

    Unloan Variable Home Loan

    • Investor
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.69 % p.a.
    Variable
    Comparison rate
    5.60 % p.a.
    Initial monthly repayment
    $2,899
    Go to site
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
    • Built by CommBank
  • Promoted

    Fixed Rate Home Loan

    • Fixed rate
    • Investor
    • Principal & Interest
    • 10% min deposit
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    5.88 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • Extra payments allowed (fee applies)
    • No valuation fees

  • Optimum Fixed Rate Home Loan

    • Fixed rate
    • Investor
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    4.99 % p.a.
    Fixed 1 year
    Comparison rate
    6.26 % p.a.
    Initial monthly repayment
    $2,681
    Go to site
    • No application, establishment or monthly fees
    • Make additional repayments up to $20,000 per year
    • Benefit from split loan options

  • 2-Year Discounted Simple Home Loan Variable

    • Investor
    • Principal & Interest
    • 40% min deposit
    • Refinance only
    • Redraw available
    Interest rate
    5.49 % p.a.
    Variable for 24 months and then 5.74% p.a.
    Comparison rate
    5.72 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • 2-year discounted variable rate offer for owner-occupiers
    • No application or ongoing fees and up to $1,000 towards legal and valuation costs (T&Cs apply)
    • Make unlimited extra repayments and access free redraw anytime

  • Fixed Rate Home Loan

    • Fixed rate
    • Investor
    • Principal & Interest
    • 10% min deposit
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    5.88 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • Extra payments allowed (fee applies)
    • No valuation fees

  • Fixed Home Loan

    • Fixed rate
    • Investor
    • Principal & Interest
    • 10% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    6.00 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • Get up to $4,000 cashback (T&Cs apply)
    • Up to 12 months repayments in advance without penalties
    • Split loan available

  • Flex Home Loan

    • Fixed rate
    • Investor
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.53 % p.a.
    Fixed 2 years
    Comparison rate
    5.94 % p.a.
    Initial monthly repayment
    $2,848
    Go to site
    • Multiple offset accounts available
    • Free extra repayments
    • Easy redraw facility

  • Unloan Variable Home Loan

    • Investor
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.69 % p.a.
    Variable
    Comparison rate
    5.60 % p.a.
    Initial monthly repayment
    $2,899
    Go to site
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • Solar Home Loan

    • Investor
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.69 % p.a.
    Variable for 60 months and then 6.23% p.a.
    Comparison rate
    6.03 % p.a.
    Initial monthly repayment
    $2,899
    Go to site
    • Unlimited additional repayments
    • Option offset sub-account
    • No ongoing fees to pay

  • Neat Home Loan

    • Investor
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
    Comparison rate
    5.76 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • Free extra repayments
    • Easy redraw facility
    • No annual fee to pay

  • Flex Home Loan

    • Investor
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
    Comparison rate
    5.98 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • Multiple offset accounts available
    • Free extra repayments
    • Easy redraw facility

  • Variable Investor Home Loan

    • Investor
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.84 % p.a.
    Variable
    Comparison rate
    5.88 % p.a.
    Initial monthly repayment
    $2,947
    Go to site
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.
Showing 10 results from 408 home loans. Use the filters to see more

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^ Accurate as of time of writing. 

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

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