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Investment lending · residential and portfolio
Investment lending, structured deliberately
How an investment loan is structured matters as much as its rate. Get the structure wrong and the next purchase becomes harder than it needed to be.
Investment lending is priced above owner-occupied lending. Average variable rates on investment loans currently sit around 5.7% p.a. against roughly 5.5% p.a. for owner-occupiers. That gap is a policy decision by lenders and regulators, not a reflection of your particular risk.
The structural questions matter more than the margin. Whether loans are cross-collateralised, whether you use interest-only, and how equity is released between properties all shape whether a second or third purchase is possible. A structure that looks efficient today can lock you in place later.
What we work on
- First investment purchase using equity in your home
- Interest-only periods and what happens when they end
- Releasing equity without cross-collateralising every property
- Refinancing an existing investment loan
- Portfolio structuring across multiple lenders
- Servicing assessments where rental income is counted
What you get from us
Cross-collateralisation is easy to enter
And difficult to unwind. Keeping loans separate usually costs nothing and preserves flexibility.
Interest-only has an end
Repayments step up sharply when the period expires. That step-up is part of the assessment.
Rental income is discounted
Lenders typically count only part of the rent, allowing for vacancy and costs.
Yields are shifting
National gross rental yields reached 3.7% recently, with regional yields near 4.2%.
Eligibility
What lenders look at
- You're 18 or over and an Australian citizen or permanent resident
- You have some regular income — from work, self-employment, superannuation, investments or a pension
- You're borrowing an amount you can service comfortably — most of our panel starts around $10,000
- You can comfortably meet the repayments alongside your existing commitments
Every lender on the panel weighs these differently, so none of it is a fixed cut-off — send the enquiry and we'll tell you honestly what is and isn't available. If money is already tight, the National Debt Helpline offers free, independent financial counselling, with nothing to sell you.
Enquire about investment property
Two minutes. No credit check.
The market right now
Where home loan rates sit
RBA cash rate: 4.35% p.a.
Held at the Reserve Bank's 11 August 2026 meeting, effective 12 August. The Board next meets on 29 September 2026. Variable home loan rates generally move with the cash rate, though lenders do not always pass changes on in full.
Advertised variable rates: from about 5.69% p.a.
Around a dozen lenders currently advertise owner-occupier variable rates below 6% p.a. The lowest big-four variable is Westpac's Basic Variable at 5.99% p.a. (comparison rate 6.00% p.a.). Average variable rates on loans already written sit near 5.5% p.a. for owner-occupiers and 5.7% p.a. for investors.
These are market figures, not an offer of credit and not our
panel's pricing. They are published so you can see roughly where the market sits
before you enquire. Sourced from RBA and public lender comparison data, last reviewed
. The rate actually available to you
depends on the lender, the property, your deposit or equity and the lender's assessment
of your circumstances.
Comparison rates are based on a loan of $150,000 over 25 years.
WARNING: a comparison rate is true only for the example given and may
not include all fees and charges. Different terms, fees or loan amounts might result in
a different comparison rate.
Estimate
What would the repayments be?
- Total repayable
- $0
- Total interest
- $0
- Establishment fee
- $195
Estimate only. This is not a quote or an offer of credit. Figures include the $195 establishment fee and assume principal-and-interest repayments at the rate selected. Your actual rate is determined on assessment.
Common questions
Before you enquire
Do lenders count rental income?
Yes, but usually at a discount — commonly around 70 to 80% of gross rent — to allow for vacancy, management and maintenance. Some lenders also apply their own assumptions about market rent rather than accepting your figure.
Is interest-only a good idea?
It improves cash flow while it lasts and can make sense where the loan is deductible. But the repayment steps up sharply when the period ends, and lenders assess your ability to handle that step-up from the beginning. Treat it as a cash flow tool, not a way to borrow more.
Can I use equity in my home to buy an investment?
Commonly, yes. The usual approach is to release equity up to 80% of your home's value and use that as the deposit. Whether that release is structured as a separate loan or bundled with the new purchase affects both your tax position and your future flexibility, so it is worth deliberate thought.
Why are investment rates higher?
Regulatory settings and lender risk appetite. It is not a judgement about you specifically — the margin applies to the category. This is one area where comparing across a panel rather than accepting your existing bank's investment rate genuinely pays.
Talk through the structure before you buy
The structure is easier to get right the first time than to unwind later. Tell us what you are planning.
Start an enquiry