Can I borrow 100% of an investment property's value?

No. Most borrowers have a 20% deposit, but you can get an investment loan with a 10% deposit. A few lenders offer investment loans with 5% deposits.

Is it harder to get an investment loan?

Every home loan is a risk for the lender. And investment properties represent a greater risk. An owner-occupier with no other mortgages is a pretty safe bet. But an investor is speculating on the market. They may have their own mortgage too. An investor needs to cover their own mortgage, find a tenant to pay rent and cover the investment loan repayments.

What is the average investment loan interest rate?

As of October 2026, the average variable rate investment loan in Finder's database is 7.22%.

Which lender has lowest investment loan rate?

As of October 2026 the lowest investment loan rate is 5.95%, offered by Easy Street (Smart Variable Special Home Loan).

How much can you borrow for an investment property?

In Australia most borrowers, whether homeowners or investors, save a deposit of around 20%. Some lenders are reluctant to lend to an investor unless they have a 20% deposit, but it's definitely possible to buy an investment property with a 10% deposit. You could go lower, but there are fewer loan options if your deposit is 5%. When your deposit is under 20% you also need to pay LMI. This can cost you thousands or even tens of thousands, so be sure to factor that in when looking to buy an investment property.

What does an investment loan comparison rate mean?

In Australia, all home loans come with 2 rates: the interest rate and the comparison rate. This includes investment loans. The comparison rate is a legal requirement that factors in the cost of fees in addition to interest. All comparison rates are calculated on a hypothetical home loan and don't provide specific details about your own potential costs. While a comparison rate is helpful, you're better off looking at the loan fees in detail for yourself.

How many investment loans can you have at once?

There's no limit on how many investment properties you can buy or how many loans you can take out. But you do need to be in a strong financial position to get multiple loans to buy multiple investments. If you tried to buy a string of investment properties with 5% deposits, lenders would likely knock you back and your credit score would drop. But if you bought one, paid off a good chunk of it and had steady rental income, you could be in a position to finance a second investment – especially if the value of the first one has risen. It's a really good idea to talk to a broker if you're trying to finance multiple properties.

Should I use an offset account or redraw facility on my investment loan

Offset accounts and redraw facilities work in a similar way but are structured very differently. An offset account is a bank account attached to your investment loan. Any money you've saved there offsets your loan principal (reducing your overall loan term and interest charges). It's your money and you can withdraw at any time. A redraw facility lets you withdraw extra repayments you've made on your investment loan. This can be handy in an emergency. Extra repayments also shorten your loan term and reduce your interest charges. An offset account gives you more control over your money. But not every investment loan has one. If you are planning to convert your current home into an investment property then an offset account offers more tax benefits. It's complicated, but basically if you make extra repayments on your original home loan, this reduces your loan size when it becomes an investment loan. This lowers your tax deductible costs.

What is positive gearing?

Positive gearing is the flip side to negative gearing. If you're positively geared, it means the income from your investment property (rent) is greater than the cost of holding it. In other words, you're earning more in rent than you're spending on your investment loan plus maintenance, council rates, insurance and so on. You're making a profit on your investment.

How often should I review my investment home loan?

It's worth reviewing your loan's interest rate at least annually. But you should take note of any time your interest rate goes up, as this increases your investing costs.

Investment Loan Rates 2026: Compare Investment Home Loans

16 of 3,710 results

Finder Score	Interest Rate p.a.	Comparison Rate p.a.	Fees	Features	Monthly Payment
Finder score 9.8 Excellent Unloan Variable Home Loan	Finder score 9.8 Excellent	Interest Rate 6.04%	Comparison Rate 5.95%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest20% min. equityInvestment	Monthly Payment $3,315 per month	$1,000 RewardT&Cs apply T&Cs apply Go to site View details Compare product selectionCompare	loading
Finder score 9.1 Excellent Westpac Flexi First Option Investment Loan – Online Investor Variable Rate	Finder score 9.1 Excellent	Interest Rate 6.14%	Comparison Rate 6.15%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest30% min. equityInvestment	Monthly Payment $3,351 per month	Go to site View details Compare product selectionCompare	loading
Finder score 9.6 Excellent Macquarie Bank Offset Home Loan Package	Finder score 9.6 Excellent	Interest Rate 6.19%	Comparison Rate 6.44%	Fees Application: $0 Ongoing: $248 p.a.	Principal & Interest30% min. equityInvestmentOffset account	Monthly Payment $3,369 per month	Go to site View details Compare product selectionCompare	loading
Finder score 9 Excellent Virgin Money Lite Variable Home Loan $150,000 and above	Finder score 9 Excellent	Interest Rate 6.24%	Comparison Rate 6.26%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest20% min. equityInvestmentPoints	Monthly Payment $3,387 per month	Points: Earn 1,000 Virgin Money Reward points per borrower for each on-time monthly repayment. Rewards terms and conditions apply.	Enquire now View details Compare product selectionCompare	loading
Finder score 9 Excellent IMB Fixed Rate Home Loan	Finder score 9 Excellent	Interest Rate 6.59%	Comparison Rate 6.63%	Fees Application: $449 Ongoing: $72 p.a.	Principal & Interest 3Y Fixed10% min. equityInvestmentLMI	Monthly Payment $3,513 per month	Cashback: Get up to $4,000 cashback when buying or refinancing. Loan size criteria applies. T&Cs apply.	View details Compare product selectionCompare	loading
Finder score 9.2 Excellent Newcastle Permanent Real Deal Home Loan	Finder score 9.2 Excellent	Interest Rate 6.19%	Comparison Rate 6.23%	Fees Application: $350 Ongoing: $0 p.a.	Principal & Interest20% min. equityInvestment	Monthly Payment $3,369 per month	Cashback: Eligible purchases and refinancers can get up to $3,000 cashback depending on loan value with LVR 80% or less. Application must be completed online. T&Cs apply.	Go to site View details Compare product selectionCompare	loading
Finder score 9 Excellent Macquarie Bank Basic Home Loan	Finder score 9 Excellent	Interest Rate 6.24%	Comparison Rate 6.26%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest20% min. equityInvestment	Monthly Payment $3,387 per month	Go to site View details Compare product selectionCompare	loading
Finder score 9 Excellent loans.com.au Variable Bare Home Loan	Finder score 9 Excellent	Interest Rate 6.49%	Comparison Rate 6.53%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest10% min. equityInvestmentLMI	Monthly Payment $3,476 per month	View details Compare product selectionCompare	loading
Finder score 9.3 Excellent Cairns Bank Plus Fixed Home Loan	Finder score 9.3 Excellent	Interest Rate 6.44%	Comparison Rate 6.86%	Fees Application: $0 Ongoing: $395 p.a.	Principal & Interest 3Y Fixed40% min. equityInvestmentOffset account	Monthly Payment $3,458 per month	View details Compare product selectionCompare	loading
Finder score 9.1 Excellent Qantas Money Basic Variable Home Loan	Finder score 9.1 Excellent	Interest Rate 6.29%	Comparison Rate 6.36%	Fees Application: $495 Ongoing: $0 p.a.	Principal & Interest20% min. equityInvestmentPoints	Monthly Payment $3,404 per month	Qantas Points: Earn 200,000 bonus points when you apply online for a home loan of $500,000 or more by 27 Oct 2026 and settle by 27 Apr 2027, plus 100,000 points annually for the life of your loan. T&Cs apply.	View details Compare product selectionCompare	loading
Finder score 8.9 Great Cairns Bank Plus Fixed Home Loan	Finder score 8.9 Great	Interest Rate 6.39%	Comparison Rate 6.89%	Fees Application: $0 Ongoing: $395 p.a.	Principal & Interest 2Y Fixed20% min. equityInvestmentOffset account	Monthly Payment $3,440 per month	View details Compare product selectionCompare	loading
Finder score 9.6 Excellent Bank of China Discount Plus Home Loan	Finder score 9.6 Excellent	Interest Rate 6.33%	Comparison Rate 6.71%	Fees Application: $0 Ongoing: $0 p.a.	Interest only20% min. equityInvestmentOffset account	Monthly Payment $3,419 per month	View details Compare product selectionCompare	loading
Finder score 9.5 Excellent Macquarie Bank Offset Home Loan Package	Finder score 9.5 Excellent	Interest Rate 6.24%	Comparison Rate 6.49%	Fees Application: $0 Ongoing: $248 p.a.	Principal & Interest20% min. equityInvestmentOffset account	Monthly Payment $3,387 per month	Go to site View details Compare product selectionCompare	loading
Finder score 9.1 Excellent Qantas Money Basic Variable Home Loan	Finder score 9.1 Excellent	Interest Rate 6.44%	Comparison Rate 6.41%	Fees Application: $495 Ongoing: $0 p.a.	Interest only20% min. equityInvestmentPoints	Monthly Payment $3,458 per month	Qantas Points: Earn 200,000 bonus points when you apply online for a home loan of $500,000 or more by 27 Oct 2026 and settle by 27 Apr 2027, plus 100,000 points annually for the life of your loan. T&Cs apply.	View details Compare product selectionCompare	loading
Finder score 8 Great Macquarie Bank Basic Fixed Home Loan	Finder score 8 Great	Interest Rate 6.79%	Comparison Rate 6.42%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest 3Y Fixed20% min. equityInvestment	Monthly Payment $3,585 per month	View details Compare product selectionCompare	loading
Finder score 9.7 Excellent Auswide Bank Variable Home Loan Plus with Freedom Package	Finder score 9.7 Excellent	Interest Rate 6.24%	Comparison Rate 6.59%	Fees Application: $0 Ongoing: $395 p.a.	Interest only20% min. equityInvestmentOffset account	Monthly Payment $3,387 per month	View details Compare product selectionCompare	loading

Showing 16 of 3,710 results

The best investment loans for September 2026

The average property investor now takes out a loan of $708,350 to fund their investment, according to ABS lending figures.

And while interest rates are still high across the board, several lenders are offering very competitive rates for investors.

Here are 5 of the best variable investment loans for September 2026, based on their Finder Scores:

- - Easy Street Smart Variable Home Loan (min 20% equity) (Investor, IO) has a Finder Score of 9.8. It has a 6.24% interest rate for investors (comparison rate 6.2%).
  - Unloan Variable Home Loan (min 20% equity) (Investor, P&I) has a Finder Score of 9.8. It has a 6.04% interest rate for investors (comparison rate 5.95%).
  - Macquarie Bank Offset Home Loan Package (min 20% equity) (Investor, P&I) has a Finder Score of 9.5. It has a 6.24% interest rate for investors (comparison rate 6.49%).
  - Unity Bank Momentum Home Loan (min 20% equity) (Investor, P&I) has a Finder Score of 9.1. It has a 6.7% interest rate for investors (comparison rate 6.75%).
  - Virgin Money Lite Variable Home Loan $150,000+ (min 20% equity) (Investor, P&I) has a Finder Score of 9. It has a 6.24% interest rate for investors (comparison rate 6.26%).

Market update by Rebecca Pike – Finder's senior home loans writer

What are investment loans?

An investment loan is a loan you can use to purchase an investment property. That is, a property you intend to rent out. Investment loans have higher interest rates than owner-occupier loans because lenders view investors as riskier borrowers.

Investment loans: Basic facts

Fixed or variable rates

Investors can choose fixed or variable repayments. Variable rate loans are easier to pay off faster or refinance without an exit fee.

But a fixed rate loan lets you lock in an interest rate and forget about rates rising. There's also the option of splitting your loan into fixed and variable portions.

Interest-only repayments

Most owner-occupier borrowers choose principal-and-interest repayments. You borrow money and pay it back, plus interest. Investors can do this too. But they have another option.

Interest-only investment loans start with very low repayments because you're just paying the interest charges. These loans cost you more in the long run. But they let investors maximise their tax-deductible debts in the short term.

Tax deductions

As an investor, most expenses related to owning and maintaining your investment property are tax-deductible.

This includes your loan fees and your loan interest charges. If your investment costs you more than it generates in rent, you can offset the cost by reducing your tax bill.

Investor loans versus owner-occupier loans

Feature	Investor loans	Owner occupier loans
Purpose	You have to use the loan to purchase an investment property, not your place of residence.	You need to live in the property you're buying.
Deposit	It's not impossible to get an investment loan with a 5% deposit, but you'll have an easier time if you've saved between 10 and 20%.	You can get a home loan with as little as a 5% deposit (plus LMI).
Interest rate	Interest rates are (almost) always at least 10 to 20 basis points higher than a comparable owner-occupier rate (sometimes more).	Owner-occupier loans have the lowest rates on the market compared to investment loans. But you should still compare your options.
Loan approval	Lenders have stricter eligibility requirements for investors. A lender may require a higher income or restrict how much you can borrow.	An owner-occupier loan is generally easier to get approved for. But your income, spending habits and the property you're buying still matter.
Tax deductions	Any loan fees, interest charges and other borrowing costs are tax-deductible (but not stamp duty).	Your loan costs are not tax-deductible as a homeowner (sorry!).
Features	Investor loans can come with all the same features other home loans have, like offset accounts and redraw facilities.	Many owner-occupier loans come with offset accounts, and almost all variable rate loans let you make extra repayments and redraw them.

How do I compare investment loans?

Interest rate: A lower interest rate means lower loan repayments.
Fees: Take a look at fees that might come with the loan. Avoiding fees can make your loan cheaper.
Loan features: Mortgage features like an offset account can help you build up savings while reducing your interest charges. Offset accounts can be very helpful for investors planning to convert their home into an investment later.
LVR: Loan to value ratio (LVR) is the amount you can borrow relative to the value of your investment property. If you have a smaller deposit, compare which lenders allow high LVRs. But remember, the smaller your deposit, the more you have to borrow and the higher your costs will be.
Borrowing capacity: Every lender has different lending criteria. Compare lenders to get an estimate of your borrowing power before deciding on a particular loan or lender.

How your interest rate changes the cost

Here's a simple example of how the interest rate affects your loan repayments each month and the total interest you pay over 30 years.

Loan amount	Interest rate	Monthly repayment	Interest over 30 years
$600,000	6.00%	$3,598	$695,030
$600,000	6.25%	$3,695	$729,950
$600,000	6.50%	$3,793	$765,267
$600,000	6.75%	$3,892	$800,972
$600,000	7.00%	$3,992	$837,054

These calculations don't take loan fees or extra repayments into account and assume that the interest rate doesn't change over 30 years.

How do I apply for an investment property loan?

Lenders treat investment properties as higher-risk purchases, which means it can be more complicated to get an investment loan approved.

Here are 6 tips to make your investment loan application a success:

1. Save a bigger deposit.

A 20% deposit is a big ask, but it makes you a less risky borrower (and lets you save on LMI).

2. Check your credit score.

A quick check of your credit score is always a good idea. Sometimes there are red flags or errors you might not have noticed. If it's not in great shape, it's time to start improving it.

3. Trim your spending.

Cutting back on unnecessary purchases in the 3 months leading up to your application boosts your chances of approval.

Mortgage-free by retirement? It depends on your pay

Income makes a bigger difference to your mortgage-free timeline than most people expect. 76% of Australians earning $200,000-plus expect to pay off their mortgage before retirement, compared to just 25% of those earning under $50,000. That's worth keeping in mind if you're weighing up an investment loan on top of an existing mortgage. The right loan structure can help keep a debt-free timeline realistic.

Source: Finder's 2026 Home Loan Report

4. Compare loans and lenders.

Every lender has different eligibility criteria. Some may be stricter when lending to investors.

5. Choose your property carefully.

If the property you're buying looks like a riskier investment due to its size, property type or location, the lender might reject your application.

6. Talk to a mortgage broker.

A qualified broker can help match you up with a bank or lender whose policies and criteria best suit your personal situation.

"My mortgage broker suggested I go on an interest only investment property loan as it would keep down the costs, and the interest can be claimed at tax time."

Matt Corke

Head of Publishing Ventures

Risks and benefits of investing in property

Property investment can be both risky and rewarding. Here are some of the potential risks and benefits you should think about:

Benefits

Rental income. You can earn rental income that puts cash in your pocket right away.
Capital gain. If you hold the property for a long time, it could grow in value significantly.
Tax and depreciation benefits. You can deduct investment loan interest charges and other investment costs from your income tax each month, making the cost of owning a property far more affordable.
The potential to add value. Unlike shares or other investments, you may be able to increase your investment's value through renovations.

Risks

Purchase costs. There are also many upfront costs for investors, including lenders mortgage insurance (LMI), stamp duty, building and pest inspections, conveyancing and legal charges.
Ongoing costs. There are many ongoing costs such as repairs, strata fees and council rates.
Managing tenants. Being a landlord means dealing with the tenants in the property.
Illiquid asset. It can take months to sell an investment property if you need to generate cash.

Expert insight

"Common wisdom is to opt for an interest-only investment loan so you maximise your tax deductions. And it's a sound approach. The only exception is if you have already paid off the mortgage on your own home. This is not tax-deductible. At that stage, consider going principal and interest and throwing all the money you can at that investment loan to create a debt-free source of income in retirement."

Nicole Pedersen-McKinnon

Finance journalist

Investment loan guides and resources

interest rate

Investment loan basics

- Investment loans vs owner occupier loans

- Fixed rates explained

- Variable rates explained

- Check your borrowing power

Property

Diving in deeper

- How to invest in property

- Splitting your loan

- What are interest only loans?

- Investing in property as a non-resident

- What is rentvesting?

Rate on house

Investment tactics

- How investors use offset accounts and interest only loans

- Investment property tax tips

- Buying an investment property in a trust

- Buying an investment property in a trust

What is Finder Score?

The Finder Score crunches 7,000 home loans across 120+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.

To provide a Score, we compare like-for-like loans. So if you're comparing the best home loans for cashback, you can see how each home loan stacks up against other home loans with the same borrower type, rate type and repayment type. We also take into consideration the amount of cashback offered when calculating the Score so you can tell if it's really worth it.

Read the full breakdown

Frequently asked questions

Every home loan is a risk for the lender. And investment properties represent a greater risk. An owner-occupier with no other mortgages is a pretty safe bet. But an investor is speculating on the market. They may have their own mortgage too. An investor needs to cover their own mortgage, find a tenant to pay rent and cover the investment loan repayments.
In Australia most borrowers, whether homeowners or investors, save a deposit of around 20%. Some lenders are reluctant to lend to an investor unless they have a 20% deposit, but it's definitely possible to buy an investment property with a 10% deposit. You could go lower, but there are fewer loan options if your deposit is 5%.
When your deposit is under 20% you also need to pay LMI. This can cost you thousands or even tens of thousands, so be sure to factor that in when looking to buy an investment property.
In Australia, all home loans come with 2 rates: the interest rate and the comparison rate. This includes investment loans. The comparison rate is a legal requirement that factors in the cost of fees in addition to interest. All comparison rates are calculated on a hypothetical home loan and don't provide specific details about your own potential costs. While a comparison rate is helpful, you're better off looking at the loan fees in detail for yourself.
There's no limit on how many investment properties you can buy or how many loans you can take out. But you do need to be in a strong financial position to get multiple loans to buy multiple investments.
If you tried to buy a string of investment properties with 5% deposits, lenders would likely knock you back and your credit score would drop. But if you bought one, paid off a good chunk of it and had steady rental income, you could be in a position to finance a second investment – especially if the value of the first one has risen.
It's a really good idea to talk to a broker if you're trying to finance multiple properties.
Offset accounts and redraw facilities work in a similar way but are structured very differently.
An offset account is a bank account attached to your investment loan. Any money you've saved there offsets your loan principal (reducing your overall loan term and interest charges). It's your money and you can withdraw at any time.
A redraw facility lets you withdraw extra repayments you've made on your investment loan. This can be handy in an emergency. Extra repayments also shorten your loan term and reduce your interest charges.
An offset account gives you more control over your money. But not every investment loan has one.
If you are planning to convert your current home into an investment property then an offset account offers more tax benefits. It's complicated, but basically if you make extra repayments on your original home loan, this reduces your loan size when it becomes an investment loan. This lowers your tax deductible costs.
Positive gearing is the flip side to negative gearing. If you're positively geared, it means the income from your investment property (rent) is greater than the cost of holding it. In other words, you're earning more in rent than you're spending on your investment loan plus maintenance, council rates, insurance and so on. You're making a profit on your investment.

Sources

Thank you for your feedback!

To make sure you get accurate and helpful information, this guide has been edited by Sarah Megginson and reviewed by John Pidgeon, a member of Finder's Editorial Review Board.

Written by

Rebecca Pike

Editor, Money

Add to Preferred Sources

Rebecca Pike is Finder’s money editor, with over 7 years of experience in mortgages and personal finance. A frequent TV and radio commentator, she frequently appears on Sunrise and 7News, Today and 9News, as well as Sky News, Channel 10 and across radio and print. Rebecca previously served as Editor of Mortgage Professional Australia. She has a Master’s degree in Journalism as well as ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, which comply with ASIC guidelines. See full bio

Rebecca's expertise

Rebecca has written 253 Finder guides across topics including:

Home loans
Personal Loans
Car Loans
Cost of living
Budgeting

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