Your selected home loans
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 reviews and learn more about Unloan home loans
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Enjoy the investor benefits of a fixed loan term for 3 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.
Read reviews and learn more about IMB Bank home loans
Go to siteBuilt 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 reviews and learn more about Unloan home loans
Go to site
Your selected home loans
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Our experts track home loan interest rates, product changes and help you stay informed of industry trends. Read more
While a high interest rate environment and ever-growing property prices can make it difficult to crack into property, making sure you’ve got a competitive investment loan rate and the features you need can help you to save money on your property and protect your returns.
The average investment loan rate for a borrower with <80% LVR on a $400,000 loan, making principal and interest repayments over 25 years is 7.06% p.a., according to the Mozo database on 1 November 2024. However, Mozo tracks plenty of investment loans that start with a ‘6’.
Take Unloan’s Variable investment loan, at 6.29% p.a. (6.20% p.a. comparison rate*), where you get a rate discount each year you stick with them. Or Bendigo Bank’s variable rate Express Home Loan, also offering a rate of 6.29% p.a. (6.42% p.a. comparison rate*), fit with a handy 100% offset account.
For regional folks, Hume Bank has a promotional offer of a 2 year discounted variable rate for those buying in Albury city, Federation, Greater Hume Shire, Indigo Shire, Towong Shire, Wagga Wagga City, Rural City of Wangaratta, and City of Wodonga postcodes.
Hume Bank’s liteBlue Rate 2-year Discounted Variable Home Loan (Locals Only offer) has a rate of 5.74% p.a. (6.04% p.a. comparison rate*) for investors, usually 6.09% p.a.
Here’s a round-up of the lowest investment loan rates for this month:
Out of the offers we track, the top five lowest investment variable home loan rates (P&I, $400K, LVR <80%) are all well below the average rate in the database, as at 1 November 2024, and include:
If you don’t want to lock-in your investment loan rate, then check out these variable offers:
If you want security and stability, knowing what you need to pay each month for up to 5 years, then check these fixed rate investment loan deals out:
Investment home loans are used to purchase properties that the borrower doesn’t intend to live in.
Instead, investors borrow the money to buy a property, intending to rent it out and profit both from rental income and (ideally) from property value growth.
This type of home loan differs from the sort you’d apply for if you wanted to live in the property yourself. Those are known as owner-occupier home loans.
Investment loans aren’t one-size-fits-all, but a general guideline is to look for a loan that balances features and costs with your property investing aims.
When you compare, look at:
The interest rate on your loan will determine partly how much you need to repay each month. The higher your interest rate, the more you will need to charge your tenants for rent. Charge too much, and no one will be able to afford your rental, or you’ll start paying for your mortgage out of pocket.
Look for lenders charging lower than the average investment loan rate (see the monthly snapshot above for the latest figures). Typically, you’ll find lower interest rates from smaller lenders, rather than the Big Four banks.
Another consideration to make when you compare investment loans is fees. Simply put, they’ll eat into your profits. So, try to minimise your exposure to ongoing fees, and be aware of how much application and settlement fees set you back.
Different investment loans have options that could help you save, like free extra repayments, redraw facilities, offset accounts, and interest-only periods. Look into which features could be helpful to you.
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.
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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We compare home loans from the following well-known lenders and many more... SEE MORE HOME LOAN LENDERS
When my husband sold his business he got a large cash transfer and Bendigo bank couldn’t track the money The man said we should wait 24hours We were like we are not leaving till you find out where in your system it is They found it within the hour Also they have a lot of online banking outages which can be frustrating when you are shopping We are actually going to open another account with another bank and put some money in for when they go down
Read full reviewWhen my husband sold his business he got a large cash transfer and Bendigo bank couldn’t track the money The man said we should wait 24hours We were like we are not leaving till you find out where in your system it is They found it within the hour Also they have a lot of online banking outages which can be frustrating when you are shopping We are actually going to open another account with another bank and put some money in for when they go down
Great for Qantas points, you get 100,000 Qantas points on the anniversary of your home loan. The interest rates are also very good too and competitive.
Read full reviewGreat for Qantas points, you get 100,000 Qantas points on the anniversary of your home loan. The interest rates are also very good too and competitive.
Easy to deal with Local branches Supportive service
Read full reviewEasy to deal with Local branches Supportive service
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