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No annual or application fees. Competitive rate tiers based on your LVR as well as interest only and split repayment options. Fast application and turnaround process. Secure online application.
Read our Mozo Review to learn more about this Macquarie Basic Home Loan
Read our Mozo Review to learn more about this ubank Neat Home Loan
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
Read our Mozo Review to learn more about this ubank Neat Home Loan
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
Investors enjoy no monthly or annual fees to pay. Flexibility to choose your repayment schedule (weekly, fortnightly or monthly). Make regular additional repayments and extra lump sum payments. Split your home loan into multiple loan accounts.
Read our Mozo Review to learn more about this Newcastle Permanent Special Real Deal Home Loan
Read our Mozo Review to learn more about this ubank Flex Home Loan
Read our Mozo Review to learn more about this ubank Flex Home Loan
No annual or application fees. Competitive rate tiers based on your LVR as well as interest only and split repayment options. Fast application and turnaround process. Secure online application.
Read our Mozo Review to learn more about this Macquarie Basic Home Loan
Up to 10 offsets. Competitive rate tiers and interest only repayment option. No application fee. Split loan option. Fast, secure online application. $248 annual fee.
Read our Mozo Review to learn more about this Macquarie Offset Home Loan
Lock in repayments from 1 to 5 years. Competitive rate tiers depending on your LVR. No application or annual fee. Fast, secure online application.
Read our Mozo Review to learn more about this Macquarie Basic Home Loan
Read our Mozo Review to learn more about this Macquarie Offset Home Loan
Enjoy a competitive rate on your SMSF home loan with Loans.com.au. Available for refinancers only. No application fee and no settlement fee. No monthly, annual or ongoing fees. Unlimited extra repayments. Online access via Smart Money App. 30% deposit required.
Read our Mozo Review to learn more about this loans.com.au SMSF Home Loan
Enjoy a competitive rate on your SMSF home loan with Loans.com.au. Available for purchase and refinance. No application fee and no settlement fee. No monthly, annual or ongoing fees. Unlimited extra repayments. Online access via Smart Money App. 20% deposit required.
Read our Mozo Review to learn more about this loans.com.au SMSF Home Loan
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Our experts track home loan interest rates, product changes and help you stay informed of industry trends. Read more
The average investment home loan in the Mozo database is 7.13% p.a. (P&I, $400k, <80% LVR), as at 27 June 2024. This has come down by 0.02% since May.
Below are some of the lowest investment home loan interest rates in the Mozo database, at the time of writing.
Out of the offers we track, the lowest investment variable home loan rates (P&I, $400K, LVR < 80%) are all well below the average rate in the database, as at 27 June 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.
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
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We compare home loans from the following well-known lenders and many more... SEE MORE HOME LOAN LENDERS
I would suggest shopping around. I went with one of the big 4 because it was a trusted brand and I have had nothing but trouble. Constant miscommunication - due to a bank error I missed out on a fixed portion of my loan. They take no accountability for their mistakes and except you to just deal with it.
Read full reviewI would suggest shopping around. I went with one of the big 4 because it was a trusted brand and I have had nothing but trouble. Constant miscommunication - due to a bank error I missed out on a fixed portion of my loan. They take no accountability for their mistakes and except you to just deal with it.
I've had a CBA account since I was in primary school, all of my experiences with them on a personal level have been positive. Our current home loan has been refinanced with CBA, the options and drawbacks of each mortgage type are clear on the website and in the PDF options. Not being able to have an offset account with a fixed rate is the only drawback I've found, but it *did* allow us to lock in a lower rate than other banks. CBA were also one of the only banks that allowed us to finance our home with a 10% deposit.
Read full reviewI've had a CBA account since I was in primary school, all of my experiences with them on a personal level have been positive. Our current home loan has been refinanced with CBA, the options and drawbacks of each mortgage type are clear on the website and in the PDF options. Not being able to have an offset account with a fixed rate is the only drawback I've found, but it *did* allow us to lock in a lower rate than other banks. CBA were also one of the only banks that allowed us to finance our home with a 10% deposit.
Bankwest offers user-friendly digital services, competitive rates, and helpful customer support, making banking convenient. However, some may find limited branch locations a drawback. Be aware of potential fees and ensure their product offerings match your financial needs before committing. Overall, it's a solid choice for tech-savvy users.
Read full reviewBankwest offers user-friendly digital services, competitive rates, and helpful customer support, making banking convenient. However, some may find limited branch locations a drawback. Be aware of potential fees and ensure their product offerings match your financial needs before committing. Overall, it's a solid choice for tech-savvy users.
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