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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 reviews and learn more about Unloan home loans
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Read reviews and learn more about ubank home loans
Go to siteLock in a competitive fixed interest rate and enjoy peace of mind for the fixed period with SWS Bank’s Optimum Fixed Rate Home Loan. There are no application, ongoing or banking fees to pay and first home buyers and refinancers can apply with a speedy online application. Get the flexibility of loan split options and redraw facility. No offset account available for fixed rate proportion of loan. Other fees may be applicable. T&Cs apply
Read reviews and learn more about SWSbank home loans
Go to siteEnjoy 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
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Read reviews and learn more about Bank Australia home loans
Read reviews and learn more about Bank Australia home loans
Read reviews and learn more about Easy Street home loans
Read reviews and learn more about Northern Inland Credit Union home loans
Read reviews and learn more about Australian Mutual Bank home loans
Read reviews and learn more about Police Credit Union home loans
Read reviews and learn more about Australian Mutual Bank home loans
Read reviews and learn more about Northern Inland Credit Union home loans
Read reviews and learn more about Easy Street home loans
Read reviews and learn more about BankVic home loans
Lock in a competitive fixed interest rate and enjoy peace of mind for the fixed period with SWS Bank’s Optimum Fixed Rate Home Loan. There are no application, ongoing or banking fees to pay and first home buyers and refinancers can apply with a speedy online application. Get the flexibility of loan split options and redraw facility. No offset account available for fixed rate proportion of loan. Other fees may be applicable. T&Cs apply
Read reviews and learn more about SWSbank home loans
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Read reviews and learn more about Bank Orange home loans
Read reviews and learn more about Newcastle Permanent home loans
Read reviews and learn more about Regional Australia Bank home loans
Read reviews and learn more about Hume Bank home loans
Read reviews and learn more about Illawarra Credit Union home loans
Read reviews and learn more about The Capricornian home loans
Read reviews and learn more about Queensland Country Bank home loans
Read reviews and learn more about Greater Bank home loans
Read reviews and learn more about The Mutual Bank home loans
Read reviews and learn more about Greater Bank home loans
Read reviews and learn more about Newcastle Permanent home loans
Read reviews and learn more about MOVE Bank home loans
Read reviews and learn more about ING home loans
Read reviews and learn more about Illawarra Credit Union home loans
Read reviews and learn more about Qudos Bank home loans
Your selected home loans
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Australian property investors have to contend with high interest rates, ever-rising property prices, and more, which can make it difficult to crack into. So, making sure your investment home loan has a competitive rate, low fees, and the features you want can help you shave down your costs and protect your returns.
As of 1 December 2024, the average variable investor home loan rate is 7.05% p.a., but the best variable investment home loan rate sits well-below that, at 5.94% p.a. (6.00% p.a. comparison rate*) from Police Credit Union.
If you prefer a fixed-rate investment loan, check out IMB Bank’s Fixed Home Loan. IMB Bank currently offers a 3-year fixed rate of 5.89% p.a. (6.74% p.a. comparison rate*), up to $4,000 cashback (T&Cs apply), and more.
Or for Big Four backing, check out CBA’s Unloan 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.
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. But hurry you may only have until 31 December 2024 to take advantage of this special investment loan offer.
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 December 2024, and include:
†Based on a $400,000 investment home loan for a borrower with <80% LVR, making principal & interest repayments over 25 years, according to the Mozo database. Correct as at 1 December 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
10 years after my first horrific experience with the uBank Home Loans settlement team I thought things may have changed and stuck with them in 2024. Nothing has changed. They missed settlement three times by not doing what they were tasked with. Meaning I incurred extra legal fees. This despite raising my case to urgent with them more than 5 times over a two month period. Avoid. Avoid. Avoid.
Read full review10 years after my first horrific experience with the uBank Home Loans settlement team I thought things may have changed and stuck with them in 2024. Nothing has changed. They missed settlement three times by not doing what they were tasked with. Meaning I incurred extra legal fees. This despite raising my case to urgent with them more than 5 times over a two month period. Avoid. Avoid. Avoid.
Great bank for us, just difficult as the branches aren’t easy to access
Read full reviewGreat bank for us, just difficult as the branches aren’t easy to access
I’ve been using Commonwealth Bank for my home loan, and overall, it’s been a positive experience. One of the standout features is their exceptional customer service. They were incredibly helpful in structuring our loan for a removal house, which was more complex than a standard loan. The team took the time to guide us through the process and ensure we understood all the details, which made the whole experience much smoother. Additionally, their online and phone services are user-friendly and convenient, making it easy to manage our account and stay on top of things. However, one downside is that compared to other banks I’ve seen, Commonwealth Bank doesn’t offer many benefits or advantages to help with the cost of living. While their home loan services are great, there aren’t many extra perks that could make day-to-day banking more rewarding. Overall, I’m happy with their service but feel room for improvement exists.
Read full reviewI’ve been using Commonwealth Bank for my home loan, and overall, it’s been a positive experience. One of the standout features is their exceptional customer service. They were incredibly helpful in structuring our loan for a removal house, which was more complex than a standard loan. The team took the time to guide us through the process and ensure we understood all the details, which made the whole experience much smoother. Additionally, their online and phone services are user-friendly and convenient, making it easy to manage our account and stay on top of things. However, one downside is that compared to other banks I’ve seen, Commonwealth Bank doesn’t offer many benefits or advantages to help with the cost of living. While their home loan services are great, there aren’t many extra perks that could make day-to-day banking more rewarding. Overall, I’m happy with their service but feel room for improvement exists.
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