Investment Loan Rates

Compare investor mortgage rates from 2.84% and expand your property portfolio with a loan that works for you.

Last updated:

Happy couple shaking hands with financial advisor.

Planning to invest in property? You'll need to maximise your returns with an affordable investment loan rate and a mortgage that matches your investment strategy. Here's how you can find one.

UBank Home Loan Offer

UBank UHomeLoan Variable Rate - Discount Offer for Investor Variable P&I Rate

3.24 % p.a.

variable rate

3.24 % p.a.

comparison rate

UBank Home Loan Offer

Apply for the UBank UHomeLoan Variable Rate - Discounted Offer for Investor P&I and get a low variable interest rate, plus no application and ongoing fees.

  • Interest rate of 3.24% p.a.
  • Comparison rate of 3.24% p.a.
  • Application fee of $0
  • Maximum LVR: 80%
  • Minimum borrowing: $100,000
Go to site
Promoted

Compare investor home loans for January 2020

Rates last updated January 21st, 2020
$
Loan purpose
Offset account
Loan type
Repayment type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
UBank UHomeLoan Variable Rate - Discount Offer for Investor Variable P&I Rate
3.24%
3.24%
$0
$0 p.a.
80%
Get a discounted, low-fee investor loan from a convenient online lender. 20% deposit required.
loans.com.au Smart Home Loan - (Investor, P&I)
3.19%
3.21%
$0
$0 p.a.
80%
A competitive variable investor rate for borrowers with 20% deposits. Low fees, redraw facilities and repayment flexibility.
Gateway Bank Low Rate Essentials Variable Rate Home Loan - Special offer LVR up to 80% and over $500k (Investor, P&I)
3.29%
3.32%
$0
$0 p.a.
80%
Investors with 20% deposits can get this flexible variable mortgage with low fees and a reasonable rate.
Pepper Money Essential Prime Full Doc Home Loan - LVR >75% up to 80%
3.59%
3.79%
$599
$10 monthly ($120 p.a.)
80%
This is a competitive, flexible variable rate suitable for borrowers with a good credit history. Borrow up to 80%.
UBank UHomeLoan - 1 Year Fixed Rate (Investor, P&I)
2.89%
3.84%
$395
$0 p.a.
80%
Investors can enjoy flexible repayments and an easy application process with this pioneering online lender.
ING Orange Advantage Loan - $150k to $500k (LVR <=80% Investor, P&I)
3.49%
3.82%
$0
$299 p.a.
80%
Investors can enjoy a 100% offset account, a redraw facility and flexible repayments.
UBank UHomeLoan - 3 Year Fixed Rate (Investor, P&I)
2.84%
3.59%
$395
$0 p.a.
80%
Pay no ongoing fees on this investment loan fixed for 3 years.
Pepper Money Essential Prime Alt Doc Home Loan - LVR up to 55%
3.69%
3.88%
$599
$10 monthly ($120 p.a.)
55%
A competitive rate home loan with an offset facility for self-employed borrowers.
ANZ Breakfree Home Loan Package  - $500,000 plus (LVR <=80% Investor, IO)
4.84%
4.99%
$0
$395 p.a.
80%
Pay no application fee with 100% offset account with redraw facility and borrow up to 95% LVR.

Compare up to 4 providers

Aussie Home Loans Logo

Start your home loan application with expert help from Aussie.

By submitting this form, you agree to the Finder Privacy and Cookies Policy and Terms of Use

Applications are subject to approval. Conditions, fees and charges apply. Please note that you need to be an Australian citizen or permanent resident to apply.

Credit services for Aussie Select, Aussie Activate and Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 (“Aussie”) and its appointed credit representatives, Australian Credit Licence 246786. Credit for Aussie Select products is provided by Residential Mortgage Group Pty Ltd ACN 152 378 133, Australian Credit Licence 414133 (“RMG”). RMG is a wholly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945. Credit for Aussie Activate products is provided by Pepper Finance Corporation Limited ACN 094 317 647 (“Pepper”). Pepper Group Limited ACN 094 317 665, Australian Credit Licence 286655 acts on behalf of Pepper. Credit services for Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 Australian Credit Licence 246786 (“Aussie”) and its appointed credit representatives. Aussie is a trade mark of AHL Investments Pty Ltd ABN 27 105 265 861. Credit and any applicable offset accounts for Aussie Elevate are issued by Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL / Australian Credit Licence 237879.

Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. ©2019 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.

By submitting this form, you agree to the Aussie privacy policy.

An Aussie mortgage broker can find the right home loan for you.

  • FREE Suburb and Property Report with every appointment.
  • Access 3,000+ loans from over 20 lenders.
  • Get expert help with your loan application, including paperwork and eligibility.

Aussie Home Loans Lender Logos

The Adviser’s number 1 placed mortgage broker 7 years running (2013-2019)

What is an investment mortgage?

An investment loan lets you borrow money to buy a property for investment. In other words, it's a home loan but not for the house you live in (that's called an owner-occupier loan).

As an investor, you usually lease the property to a tenant and receive rent. Hopefully the property's value rises over time, meaning you can make a capital gain.

These loans have all the same features as other mortgages, but investment loans tend to have higher interest rates and stricter eligibility standards.

Australian investment loan statistics at a glance

Here are some of the latest statistics on investment loan rates and loan values, based on Finder's own data and the Australian Bureau of Statistics. We update this information every month. Learn more about our lowest rate tracking methodology and see more home loan statistics here.

How do I find the right loan for my investment?

All would-be investors should consider the following when finding the right mortgage:

  • Low rate. For any borrower, a lower investment loan interest rate means lower repayments. As an investor, interest charges are tax deductible, which is a big plus.
  • The fewer the fees, the better. Avoiding fees where possible can also make your loan cheaper.
  • Loan type. You have to choose between a fixed or variable rate type and consider whether you want an interest-only investment loan.
  • Features. Mortgage features like an offset account can be very helpful if you know how to take advantage of them. It all depends on your investment strategy.

Investment strategies, loan types and more

Two investors looking at paperwork together.The type of investment loan you need depends heavily on your investment strategy. Some investors may prefer a simple "buy and hold" strategy of collecting rent, paying off the mortgage and hoping for a modest capital gain.

Some investors, confident of a boom in prices, may only hold their investment for a few years and try to sell again at a profit. This more daring strategy often involves making smaller interest-only payments (meaning you don't repay the loan itself until you sell).

And negative gearing is another factor that many investors take advantage of regardless of their loan type.

It's also possible to purchase an investment via a self managed super fund (SMSF) loan or fund part of your investment by borrowing equity in your own home through a line of credit loan.

Are eligibility requirements stricter for investors?

Lenders treat investment properties as higher risk purchases. This means it can be harder to get an investment loan approved.

Here are some tips for a successful investor loan application:

  • Check your credit score. A quick check of your credit score is a good idea to make sure you don't have any debts or credit problems that could harm your application.
  • Save a bigger deposit. Having a 20% deposit is an advantage when applying as an investor. You can find loans that will let you borrow more than 80%, but they're harder to get.
  • Get all your paperwork together. Having a strong application supported by financial documentation is a must. Here's a checklist of what you need.
  • Trim your spending. Lenders examine an applicant's spending very carefully. Cutting back on unnecessary purchases in the three months leading up to your application will boost your chances of approval.
  • Choose your property carefully. Lenders use your property as security. And if the property you're buying looks like a bad investment they might reject your application. Buying a small unit in a postcode where there is an oversupply of such properties could be a red flag, for example. Talk to the lender before applying.
  • Talk to a mortgage broker. A qualified broker can help you apply for a loan that you can actually get. They can help with the paperwork too.

Organise a free chat with a mortgage broker today

How to get your investment mortgage approved according to the experts

"Assuming a lender will accept every property is a mistake," says buyer's advocate and property investment advisor Cate Bakos. "I've seen investors purchase properties with limited kitchen facilities in place only to be shocked when the property is rejected altogether by the lender."

"Buyers also need to be confident that they aren't paying too much. Conducting recent comparable sales analysis, and focusing on recently sold properties on similar land size, with similar layout, style and age in a similarly regarded street is crucial. If they can't identify properties to support the price they are prepared to pay, they need to anticipate that the lender's valuer may not be able to justify it either."

Are you ready to be an investor?

Property investment is risky. Rental income and capital gains are never guaranteed. Before taking the plunge, here are some of the potential risks and benefits you should think about.

Risks

  • Costs. There are also many upfront costs for investors, including lenders mortgage insurance (LMI), stamp duty, building and pest inspections conveyancing and legal charges. As the owner of the property, you'll also be responsible for covering ongoing costs such as repairs and maintenance.
  • Managing tenants. Being a landlord means dealing with the tenants in the property. You can do it yourself or outsource this work to a real estate agent, but you will have to pay a commission.
  • Selling takes time. Selling property can take a while. If you need your investment cash on short notice, then property might not be for you.

Benefits

  • Rental income. An investment property can increase your cash flow by providing you with a second income source through rental income. A well-located property could provide 3–5.5% rental yield.
  • Capital gain. When it comes time to sell your property, you may benefit from making a capital gain if the value of your property has risen.
  • Tax and depreciation benefits. You can deduct investment loan interest charges and other investment costs from your tax.
  • Add value. Unlike shares, you can often add value to an investment through renovations.

More guides and information to help you make a better decision

The latest property and investment news

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.

31 Responses

  1. Default Gravatar
    Gordon'sSeptember 2, 2019

    We owe $280,000 on an investment property, that’s 7 years old and has always been rented out. We had a $400,000 loan on the new property. We would like to renew our loan for a lower percentage rate, currently 4.24%. What’s the best way to go about this, and is it worth it to change?

    • Avatarfinder Customer Care
      JeniSeptember 3, 2019Staff

      Hi Gordon,

      Thank you for getting in touch with Finder.

      I understand that you’re at the state of considering to refinance your new home loan or the investment property loan. Since you’re thinking to refinance for a lower interest rate, it is best to speak to a mortgage broker on this matter as they can provide a more accurate info on refinancing your mortgages.

      I hope this helps.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

  2. Default Gravatar
    TazzaAugust 14, 2019

    I am 58 and husband 65. We are working overseas. We would like to buy a property in Nelson Bay and keep our property in Gosford. We would need to borrow the whole amount for the Nelson Bay property and spread the loan over the two properties. We would rent both. When we retire we will sell one and live in the other. Will anyone lend about 600 k to someone our age?

    • Avatarfinder Customer Care
      JeniAugust 14, 2019Staff

      Hi Tazza,

      Thank you for getting in touch with Finder.

      Yes, that it is possible to take out a mortgage with many leading Australian lenders. However, you will need to go the extra mile to prove your ability to repay the loan. Please check out this page for more info on this matter.

      I also suggest that you seek help from a mortgage broker since they’d be able to help you further in looking for providers that offer the cheapest rate.

      I hope this helps.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

  3. Default Gravatar
    SuzetteSeptember 24, 2018

    What does P&I mean?

    • Avatarfinder Customer Care
      JeniSeptember 24, 2018Staff

      Hi Suzette,

      Thank you for getting in touch with finder.

      P&I stands for principal and interest. Principal is the amount of money you have borrowed from the bank (minus your repayments). Interest is the money charged on top of the principal and is calculated based on the interest rate and the size of the principal.

      I hope this helps.

      Please feel free to reach out to us if you have any other enquiries.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

  4. Default Gravatar
    SonjaAugust 9, 2016

    Hi

    I applied for an owner/occupier home loan with a bank but they were unable to offer me the amount I wanted. I was advised by them that I could instead apply for a loan as an investor which would obtain me a higher loan amount as they would factor in potential rental income – and then after obtaining the loan, advising them I’d ‘changed my mind’ and wished to live in the property and switch to the occupier home loan instead.

    This seems kind of ‘dodgy’ to me – is it legal? Are there any ramifications to doing this, eg is stamp duty and taxes higher on investment properties than on owner/occupied?

    thanks a lot

    Sonja

  5. Default Gravatar
    KarenMarch 8, 2016

    We are building a house on land that we own. We may rent we may choose to live in the house. Are we able to take out a home loan even if we choose to rent the property once built?

    • Avatarfinder Customer Care
      BelindaMarch 10, 2016Staff

      Hi Karen,

      Thanks for reaching out.

      At the time of applying for a home loan, you’ll need to have a fairly clear idea of whether the loan is for owner-occupier or investment purposes. This is because the structure of the loan will be catered to the loan purpose and your needs. For instance, if you initially took out an owner-occupier line of credit home loan but then later decided to turn the property into an investment, you would not benefit from tax incentives from this kind of structure.

      However, circumstances do change. Your best course of action would be to speak to a licensed mortgage broker regarding your borrowing options and the best type of loan for your purchase.

      Thanks,
      Belinda

  6. Default Gravatar
    DebJanuary 20, 2016

    Am I eligible to apply for an ‘investment loan” if just buying a vacant block of land?

    • Avatarfinder Customer Care
      BelindaJanuary 21, 2016Staff

      Hi Deb,

      Thanks for reaching out.

      This will depend on the lender’s eligibility criteria for the home loan. Above on this page you can compare a range of home loans that are suited for investment purposes and you can fill out the form to speak to a mortgage broker to discuss your borrowing options.

      Alternatively, you learn more about vacant land home loans here and compare construction home loans on this page.

      Due to the conservative approach that lenders take towards vacant land home loans, many offer a lower maximum loan-to-value (LVR) ratio and as a result you may need to save a larger deposit.

      Kind regards,
      Belinda

  7. Default Gravatar
    craigNovember 25, 2015

    Are your investment loan rates applicable to a self managed super fund?

    • Avatarfinder Customer Care
      MarcNovember 25, 2015Staff

      Hi Craig,
      thanks for the question.

      Investment home loan rates generally do not apply to SMSF lending. For SMSF home loans, check out our guide and comparison table here.

      I hope this helps,
      Marc.

  8. Default Gravatar
    HelenAugust 20, 2015

    what is LVR?

    • Avatarfinder Customer Care
      BelindaAugust 20, 2015Staff

      Hi Helen,

      Thanks for your enquiry.

      The loan-to-value (LVR) ratio refers to the size of a loan in relation to the value of a property, expressed as a percentage.

      For instance, if you’re looking to purchase a property for $500,000 and you need a loan of $400,000 to purchase it, then your LVR would be 80%.

      You can read about how to calculate the LVR for your loan on this page.

      I hope this clarifies things for you.

      Thanks,
      Belinda

  9. Default Gravatar
    IdaAugust 12, 2015

    Hello Belinda
    I am looking to refinance my investment loan, I am renting out a factory. Could you help me please.

    • Avatarfinder Customer Care
      BelindaAugust 13, 2015Staff

      Hi Ida,

      Thanks for your enquiry.

      finder.com.au is an online comparison service so we can’t offer personalised advice about how to refinance your investment loan, but rather we can offer general information to help you make a more informed decision.

      On this page and this page you can read our property investment guide and learn about the process involved when refinancing. You can also compare a range of home loans that are suited for investment purposes.

      Please be mindful of any switching or exit fees you may be charged by your existing lender as well as the application fees charged by your new lender. You can use our refinancing calculator here to weigh up the costs involved.

      Thanks,
      Belinda

  10. Default Gravatar
    JacksonJune 26, 2015

    Hi.
    My question is in regards to LMI when accessing equity.
    let say I bought A property with an LVR of 95% and paid LMI. If I access some equity or refinance whilst keeping the new LVR at 95% would I have to pay LMI again? if so would it be the full amount or just the difference? and how ould this be calculated. I dont want to wait untill I have enough equity to take some money and have a remaining LVR of 80%.

    Thanks

    • Default Gravatar
      JodieJune 26, 2015

      Hi Jackson,

      Thank you for contacting finder.com.au, a financial comparison website.

      LMI is due in full on any loan that goes above 80% LVR no matter if it is a new loan or refinancing from an old loan and it calculated on based on the specifics of the loan.

      Your property price may have gone up so you may be able to refinance without incurring LMI, you may be eligible for a rebate from your current LMI policy all you have to do is discuss this with the provider of your LMI.

      If you are looking to refinance in order to purchase an investment property we have a page that gives great tips on refinancing for investments.

      Regards
      Jodie

Ask a question
Go to site