Compare Investment Property Home Loan Rates

10+ competitive investor mortgages with sharp rates and low fees.

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Loans.com.au Home Loan Offer

loans.com.au Smart Home Loan - (Investor, P&I)

3.19 % p.a.

variable rate

3.21 % p.a.

comparison rate

Loans.com.au Home Loan Offer

The loans.com.au Smart Home Loan is an investor mortgage with no application or ongoing fees. Borrow up to 80% of the property's value.

  • Interest rate of 3.19% p.a.
  • Comparison rate of 3.21% p.a.
  • Application fee of $0
  • Maximum LVR: 80%
  • Minimum borrowing: $50,000
  • Max borrowing: $1,000,000
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Compare investor mortgages from across the market


Maximise your property investment returns with an affordable loan that matches your investment strategy. Compare fixed and variable rates with principal and interest or interest only repayment terms.

Rates last updated December 16th, 2019
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Loan purpose
Offset account
Loan type
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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
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.
State Custodians Low Rate Home Loan with Offset - LVR up to 80% (Investor, P&I)
3.15%
3.17%
$0
$0 p.a.
80%
This investment loan keeps fees low, has a sharp interest rate and comes with a 100% offset account.
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.
Tic:Toc Invest Fixed Rate Home Loan - 2 Year Fixed (Principal & Interest)
2.89%
3.11%
$0
$0 p.a.
85%
Apply online and get fast approval for this fixed rate, low-fee loan with redraw facilities. Add a 100% offset account for $10 a month.
Virgin Reward Me Variable Home Loan - LVR <= 80% ($500k to $750k Investor, P&I)
3.44%
3.58%
$0
$10 monthly ($120 p.a.)
80%
A flexible variable loan for investors. No application fee.
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.
Gateway Bank Low Rate Essentials Variable Rate Home Loan - Special Offer LVR up to 80% (Investor, IO)
3.49%
3.51%
$0
$0 p.a.
80%
Competitive variable rate loan for owner occupiers and investors.
IMB Fixed Rate Home Loan - 3 Years Fixed (LVR ≤90% Investor, P&I, NSW and ACT borrowers only)
3.29%
3.91%
$449
$6 monthly ($72 p.a.)
90%
NSW and ACT customers only. A 3 years fixed rate investor which allows extra repayments to be made.
State Custodians Low Rate Home Loan with Offset - LVR up to 80% (Investor, IO)
3.40%
3.26%
$0
$0 p.a.
80%
A competitive rate with no application or ongoing fee.
Community First Accelerator Home Loan Package - $250k and over 2 Year Discounted Variable (Investor, P&I)
3.54%
4.44%
$600
$395 p.a.
95%
A package loan that offers discounts and a 100% offset account.
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.
State Custodians Low Rate Home Loan with Offset - LVR 80% to 90% (Investor, P&I)
3.45%
3.47%
$0
$0 p.a.
90%
Access a fee-free offset account and a special interest rate for investors.
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

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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.

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Check out some of today's Investment Property Home Loan Rates

How do I compare investment property loans?

When comparing investment loans you need to look closely at the following factors:

  • Rates. Rates have a big influence on your repayment size, so be sure to compare loans and find one with the right rates, in addition to features and minimal fees. Also compare fixed and variable rates to find one which will suit you.
  • Eligibility. Make sure the loan fits your investment strategy. Not every home loan will be available for commercial property, for example, and some loans will have limits on square meterage. Others will not be available for certain property types, such as inner city apartments.
  • Investor benefits. If you’re investing you might want to ensure your home loan has features which can maximise tax benefits or maximise cash flow. This includes interest-only options, interest in advance options, and 100% offset accounts.
  • Fees. Fees aren’t necessarily a sign of a bad loan, as long as what you’re paying for will save you money or reduce your loan costs over the life of your loan. If your loan has an annual fee for example, it may come with flexible terms which allow you to use it as you want to. Compare not only application, valuation and legal fees but also ongoing fees for features such as offset accounts and redraw facilities, and monthly fees.
  • Features. This depends on how you plan to use your loan. If you plan to put extra funds towards your home loan, ensure that your lender won’t penalise you. If you want to get access to these extra funds, seek one with a redraw facility.

Use our repayment calculator to get a better idea of your repayment costs.

How do investor loans differ from typical home loans?

Lenders see mortgages for investment as a higher risk than regular owner occupier home loans. Home loans for investment often have stricter lending requirements and borrowing limits, plus higher interest rates. They may also have a higher LVR, requiring the borrower to save up a larger deposit. Read more about how these loans differ from owner-occupier loans.

What types of loans are available for investors?

The table above contains a wide range of variable and fixed rate investor mortgages, but there are also more specialised loans that might be useful for different types of investors. You can read more about these products on the following pages:

Using the equity in your home to fund an investment

If you already own property you can use the equity in that property as a deposit on an investment loan. This means you don't need to save up a deposit, although you will need to pay back the deposit loan and the money you've borrowed to buy the property.

Calculating the equity in your property
  • Your home is valued at $750,000
  • You owe $200,000 on the property
  • Your equity = $550,000

How can I make sure I'm eligible for investor finance?

Your lender needs to be confident that you can repay your investor mortgage. To maximise your chances of success, be sure to save a good-sized deposit, prepare clear evidence of your income and check your credit score for outstanding debts and liabilities. Get those under control before applying for a loan.

The property you buy also affects your application. Some lenders are reluctant to fund purchases of risky properties, such as very small apartments in suburbs they judge to be oversupplied. You may need to approach a different lender or come up with a bigger deposit.

What strategies can I use to make a profit on my property?

Savvy investors can look at multiple property strategies to maximise their wealth creation. These include:

  • Negative Gearing. If the expenses on an investment property are greater than the income it generates you're making a loss. In Australia this loss can be used as a tax deduction, which is called negative gearing. It's a good strategy to cover early losses while waiting for your property's capital gain to grow. Learn more about negative gearing.
  • Buy and Hold. The simplest strategy. You purchase a property and hold it with the expectation that the property will grow in value over time. This strategy can be combined with negative gearing.
  • Renovate. Buy a property in need of work, renovate it into a far better property and you'll raise the property's value. This requires a lot of hard work and money but with the right property, the right renovations and the right market it can be a great strategy. Check out our renovations guides for more information.
  • Passive property development. Most people won't undertake a major property development themselves. But passive property development allows you to stump up the cash to someone else who develops it for you. It's easier than going into property development yourself, but it's not without risks.

Watch: Investment strategies explained in under 3 minutes

Check out our property investment hub to learn more about investing in property

Weighing up the benefits and the risks

As with any investment, choosing to invest in property carries both benefits and risks. It's important you weigh up the pros and cons of starting a property portfolio before you decide if the strategy is right 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. If you have a knowledgeable accountant and quantity surveyor, there’s plenty of room to take advantage of certain tax advantages, including negative gearing.
  • Control. Unlike other asset classes such as shares, many aspects of your property investment can be controlled. You can carry out value-adding activities on your property such as renovations, refinance your home loan if you find a better rate or turn your property into a boarding house.

Risks

  • Costs. Buying a property can be costly. There are also many other upfront costs you may have to pay, 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.
  • Selling a property takes time. Selling property can take a while. This means if you might need your investment cash on short notice, then property might not be for you.
  • Untenanted periods. If you rely on rental income to help pay off your property investment, you face the risk of untenanted periods which means that you may suffer financially. This is why it's important to ensure you have a cash buffer.

Frequently asked questions about investment property loans

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33 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
    ArnoldOctober 31, 2017

    Hi Debra,

    Thanks for your inquiry

    If you’re looking for other Investment Property Loans, you may check them on this page. But before you pick one out, please spare time to read this guide on Investment Loan Interests

    Regarding the fees, you may check your loan agreement to see if your lender charges a discharge fee.

    Hope this information helps

    Cheers,
    Arnold

  5. 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

    • Avatarfinder Customer Care
      MayAugust 10, 2016Staff

      Hi Sonja,

      Thank you for your inquiry and for contacting finder.com.au we are a financial comparison website and general information service we are not mortgage specialists so can only offer general advice.

      Different lenders/banks actually have their own set of eligibility criteria, for instance, for a home loan product. But most likely, when deciding on how much you can borrow, they use important criteria such as your income, outstanding debt level and credit history.

      For instance, the bank you have spoken with may have found that you can get a better offer on their investment home loan than that of the occupier home loan product. But, generally, occupier home loans carry a lower interest rate than loans offered to investors. You can find more information about occupier home loan on this page and how this differ to an investment home loan.

      Whilst it’s good that you have prepared yourself and determined how much you will borrow, it is also important to take into account the eligibility criteria offered by most lenders. This way, you will have a fairly good idea of whether or not you’ll be approved for a certain loan. Alternatively, you can also get a professional advice from a mortgage broker who can give you home loan options available for your specific situation.

      Furthermore, you may like to read our guide about know how much you can borrow on a mortgage, which you might find useful as well.

      I hope this can help.

      Cheers,
      May

  6. 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

  7. 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

  8. 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.

  9. 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

  10. 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

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