Compare investment home loans for March 2024

Ready to invest in property or switch investment loans? Mozo’s expert guides and handy calculators can help you compare investment home loans, including interest-only and low-rate mortgage deals.

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Home loan comparisons on Mozo - last updated 2 March 2024

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March Investment Monthly Snapshot

Throughout the last month, investment home loan interest rates (P&I, $400k, <80% LVR) remained steady at an average of 7.18% p.a. in the Mozo database. 

This is likely due to the improving outlook of inflation, which has returned to November 2021 levels, according to the Australian Bureau of Statistics (ABS).

For a few months now, the expectation that the Reserve Bank of Australia (RBA) will cut the official cash rate in the latter part of the year might also be a driving force in keeping investment loan rates where they are. 

A cut in, say, September 2024 (when some economists at the Big Four banks predict a cut will occur) would mean that investment loan lenders may drop their rates in lockstep. 

While that means your mortgage repayments may get cheaper, it also means an increase in competition within the housing market. 

In turn, property prices may rise and impact your repayments negatively. This may also create a higher barrier to entry in terms of mortgage serviceability. 

Lowest investment home loan rates in March 2024 

Currently, the average variable rate for principal & interest investment loans is 7.18% 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.

Investment Knowledge Hub

What are investment home loans?

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.

Investor compares equity
Investing in a second property

Investing in a second property

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.

How to compare investment home loans

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.

Compare interest rates

Investment home loans have higher interest rates than owner-occupied loans. Mozo’s comparison tool lets you filter, sort, and compare home loans. 

Award-winning deals

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.

Property insights

Property insights

Mozo’s expert writers break down and explain the property market in simple languages – including investment and financial strategies.

Things to consider when comparing investment home loans

The right investment mortgage balances features and costs with your property aims. 

  • Interest rates. The interest rate adds to your monthly repayments and overall costs. Look for interest rates lower than the market average to save, compare fixed, variable, and split rates, and use the comparison rate (not the headline rate) to inform your decision.
  • Loan features. 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.
  • Fees. There is no such thing as a fee-free home loan. Look at standard charges like application fees, ongoing fees, and settlement fees to compare these costs.
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What are the benefits of investment home loans?

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:

  • Capital gains when you sell.
  • Rental income from tenants. 
  • Home equity as your ownership share increases.

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.

Hot Tip!

Consult a tax professional to see what you can claim on your taxes. Eligibility for deductions with vary by property investor.

Investment Home Loan Calculators

Can your investment turn a profit? Crunch the numbers with Mozo's free mortgage calculators. See more

Investment FAQS

How do you apply for an investment home loan?

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.

What documents do you need to apply for an investment home loan?

You must give a home loan lender identity, financial, and property information in your investment application. This can include mortgage documents such as:

  • Driver’s licences and passports. 
  • Property valuation reports.
  • Asset portfolios and dividend statements.
  • Mortgage reports on any other properties you own.
  • Income and bank statements.
  • Debts and liabilities. 
  • Credit reports.
  • Superannuation balances. 
How is an investment home loan different from an owner-occupied home?

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.

Can I switch from an investment loan to an owner-occupier loan?

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 should I review my investment home loan?

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.

What is negative gearing?

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.

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Evlin DuBose

RG146
Senior Money Writer

Evlin is RG146 certified for general advice (Tier 2) and has become a leading voice in finance news since joining Mozo two years ago. She is regularly featured in Google's Top Stories alongside major publications like News.com.au and Yahoo Finance, and seasoned journalists. Despite being in the industry for just two years, she is Mozo's go-to writer for all things RBA and her research has been referenced by the Victorian Government. With a Bachelor of Communications degree from UTS, where she won the Dean's Merit Award and acted as the Director of Student Publications.

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JP Pelosi

RG146
Managing editor

Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian, News.com.au, Domain.com.au, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He likes a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.

Brands we compare

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Home loan customer reviews

ANZ Standard Variable Rate Home Loan
Overall 5/10
Check the features (or lack thereof)

They have removed the benefits from the accounts I had eg. They removed the offset features which was disappointing

Read full review

They have removed the benefits from the accounts I had eg. They removed the offset features which was disappointing

Price
3/10
Features
3/10
Customer service
5/10
Convenience
7/10
Trust
7/10
Less
Peter, South Australia, reviewed 3 days ago
First Choice Credit Union Home Loan
Overall 10/10
First Choice Credit Union locally Ru for local pe

First choice credit union is a locally run for local.people...the support us to purchase our owner build property in the local council area.... they were always available to talk to.. payments to contractors were made within hours. I have and will recommend First Choice Credit Union... we would not have achieved our drea. Without their support..

Read full review

First choice credit union is a locally run for local.people...the support us to purchase our owner build property in the local council area.... they were always available to talk to.. payments to contractors were made within hours. I have and will recommend First Choice Credit Union... we would not have achieved our drea. Without their support..

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Rebecca, New South Wales, reviewed 3 days ago
Suncorp Standard Variable Home Loan First Home Buyer (Home Package Plus)
Overall 9/10
Happy with suncorp for our first home loan

They had a competitive interest rate, easy application and on boarding process. Call centre staff have always been helpful with enquiries or internet baking questions. Online banking easy to navigate and looks nice!

Read full review

They had a competitive interest rate, easy application and on boarding process. Call centre staff have always been helpful with enquiries or internet baking questions. Online banking easy to navigate and looks nice!

Price
8/10
Features
8/10
Customer service
9/10
Convenience
9/10
Trust
8/10
Less
Samantha, New South Wales, reviewed 3 days ago

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