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Enjoy a low variable rate with no application, ongoing or monthly fees to pay. Access your money via internet banking at any time with free redraws. Make additional repayments at any time. Available for owner occupied, investment and interest only repayments.
Read our Mozo Review to learn more about this First Option Bank Simple Home Loan Variable
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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 this Unloan Unloan Variable
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Your selected home loans
Home loans come in many shapes and sizes, start comparing here based on your needs.
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Our experts track home loan interest rates, product changes and help you stay informed of industry trends. Read more
Worried about mortgage repayments eating into your returns? Compare investment loans to see if you can find a competitive interest rate on a loan that ticks all the right boxes.
The average investment home loan rate in the Mozo database is currently 7.07% p.a.†, but there are still plenty of lenders out there with rates that start with a ‘6’.
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 October 2024, and include:
For more information on property investing, browse our home loan guides for tips and tricks, including why investors pay more for a home loan.
†Average investment home loan rate based on a $400,000 investment loan in the Mozo database, for a borrower with <80% LVR, making principal and interest payments, over 25 years. Correct as of 1 October 2024.
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
We compare home loans from the following well-known lenders and many more... SEE MORE HOME LOAN LENDERS
These people are merciless. They have no care of concern for their customers. They also have no interest in helping or negotiating with you if you have less than a 1 million dollar loan with them. With a mortgage of $475K, I was told that I was an "easy loss" for the bank.
Read full reviewThese people are merciless. They have no care of concern for their customers. They also have no interest in helping or negotiating with you if you have less than a 1 million dollar loan with them. With a mortgage of $475K, I was told that I was an "easy loss" for the bank.
I like Suncorp Bank for a few key reasons. First, they offer a wide range of financial services, from home loans and savings accounts to insurance. It’s convenient having everything in one place. I’ve also found their interest rates to be pretty competitive, especially for home loans and savings accounts, which is important to me. Their customer service has been a positive experience, and I find their online and mobile banking platforms easy to use. It’s quick and simple to manage my accounts, pay bills, and transfer money. On the downside, I’ve noticed that some of their accounts have higher fees compared to other banks. This can be frustrating if you're not careful about which account you choose. Also, their branch network is somewhat limited, so if you prefer going into a branch for banking, it might not be the most convenient option depending on where you live. Another thing to watch out for is that while their interest rates are competitive, they can fluctuate, which might not always be in your favor. Lastly, the loan approval process can sometimes be slower, which can be a hassle if you’re applying for a home loan. If you’re thinking about Suncorp, I’d say the product variety and competitive rates are great, but definitely look at the fees and make sure there's a branch near you if that’s important.
Read full reviewI like Suncorp Bank for a few key reasons. First, they offer a wide range of financial services, from home loans and savings accounts to insurance. It’s convenient having everything in one place. I’ve also found their interest rates to be pretty competitive, especially for home loans and savings accounts, which is important to me. Their customer service has been a positive experience, and I find their online and mobile banking platforms easy to use. It’s quick and simple to manage my accounts, pay bills, and transfer money. On the downside, I’ve noticed that some of their accounts have higher fees compared to other banks. This can be frustrating if you're not careful about which account you choose. Also, their branch network is somewhat limited, so if you prefer going into a branch for banking, it might not be the most convenient option depending on where you live. Another thing to watch out for is that while their interest rates are competitive, they can fluctuate, which might not always be in your favor. Lastly, the loan approval process can sometimes be slower, which can be a hassle if you’re applying for a home loan. If you’re thinking about Suncorp, I’d say the product variety and competitive rates are great, but definitely look at the fees and make sure there's a branch near you if that’s important.
My home burnt down in March this year.I still have a mortgage with Comm Bank.The insurance company have been dragging out payment,which has left me financially compromised. Comm bank have been very supportive during this crisis and have provided me with hardship plans.They have been amazing.People be aware of NRMA insurance.I have paid money for over 50 years,never made a claim and since the fire they have turned ,are nasty and trying every trick in the book not to pay the policy,which is still ongoing I am 71,I think they hope I will die from the stress
Read full reviewMy home burnt down in March this year.I still have a mortgage with Comm Bank.The insurance company have been dragging out payment,which has left me financially compromised. Comm bank have been very supportive during this crisis and have provided me with hardship plans.They have been amazing.People be aware of NRMA insurance.I have paid money for over 50 years,never made a claim and since the fire they have turned ,are nasty and trying every trick in the book not to pay the policy,which is still ongoing I am 71,I think they hope I will die from the stress
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