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LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.34% p.a.
6.36% p.a.
$3,108
Principal & Interest
Variable
$0
$530
90%
  • Minimum 10% deposit needed to qualify. Available for purchase or refinance
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
 Disclosure
6.29% p.a.
6.20% p.a.
$3,092
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • A low-rate variable investment home loan from a 100% online lender.
  • Backed by the Commonwealth Bank.
 Disclosure
6.24% p.a.
6.26% p.a.
$3,075
Principal & Interest
Variable
$0
$250
60%
  • Apply online or talk to our specialists for a quick decision and easy application
 Disclosure
6.19% p.a.
6.58% p.a.
$3,059
Principal & Interest
Variable
$0
$530
90%
90% LVR
  • You MUST already have Solar or a documented plan to install within 90 days to be eligible for this loan
  • Available for refinance or purchase
  • No monthly, annual or ongoing fees
 Disclosure
6.34% p.a.
6.36% p.a.
$3,108
Principal & Interest
Variable
$0
$350
60%
  • $0 application fee
  • Fast turnaround times
  • Estimate your borrowing power in as little as 1 minute
 Disclosure
6.24% p.a.
6.46% p.a.
$3,075
Principal & Interest
Variable
$15
$784
60%
6.29% p.a.
6.32% p.a.
$3,092
Principal & Interest
Variable
$null
$300
70%
6.34% p.a.
6.59% p.a.
$3,108
Principal & Interest
Variable
$248
$null
70%
6.24% p.a.
6.26% p.a.
$3,075
Principal & Interest
Variable
$0
$210
70%
6.29% p.a.
6.29% p.a.
$3,092
Principal & Interest
Variable
$0
$0
80%
6.29% p.a.
6.30% p.a.
$3,092
Principal & Interest
Variable
$0
$180
90%
6.34% p.a.
6.40% p.a.
$3,108
Principal & Interest
Variable
$0
$835
70%
6.46% p.a.
6.59% p.a.
$3,147
Principal & Interest
Variable
$null
$300
80%
6.84% p.a.
7.16% p.a.
$3,273
Principal & Interest
Variable
$null
$null
80%
7.29% p.a.
7.37% p.a.
$3,424
Principal & Interest
Variable
$8
$350
90%
8.04% p.a.
8.04% p.a.
$3,683
Principal & Interest
Variable
$null
$160
95%
More home loans
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Hot investment home loan rates in November

As a property investor, you should always be on the lookout for a more competitive rate on your investment loan. Lowering your interest rate even a small amount can mean major savings in the long term, as well as improving your cash flow.

These are some of the lowest variable rate investment home loans in our database:

  • Qudos Bank: No Frills Investment loan (LVR<70%) - 6.19% p.a (6.19% p.a comparison rate*)
  • Newcastle Permanent: Real Deal Investment (LVR<80%) - 6.19% p.a (6.23% p.a comparison rate*)
  • MOVE Bank: Everyday variable investor home loan (LVR<90%) - 6.29% pa. (6.34% p.a comparison rate*)

And fixed rates:

  • Australian Mutual Bank: Investment Three Year Fixed Home Loan (LVR<80%) - 5.59% p.a (6.63% p.a comparison rate*)
  • Easy Street Financial Services: Two year fixed home loan special (LVR<80%) - 5.49% p.a (5.98% p.a comparison rate*)

For more information on how we’ve selected these products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of 1 November, 2024. View disclaimer

Getting a low rate investment home loan

Many lenders offer lower rates to borrowers who can demonstrate they are less of a financial risk. Having a larger deposit relative to the value of the property being purchased (i.e. a lower loan to value ratio) is the best way to demonstrate this - many lenders will have lower rates available for borrowers with a lower LVR.

See also: Home loan deposit calculator

Maintaining a strong credit score and a stable income can also help you qualify for lower rate products.

Additionally, banks and lenders might view an investor buying property in an area with high rental demand, a stable rental market, or one that typically offers above-average rental yields more favourably than they would another investor purchasing in a less desirable location.

What is an investment home loan?

Investment home loans are for people who want to buy a property to rent out instead of live in. These products are generally distinct from 'owner occupier' home loans, and often have higher interest rates and stricter eligibility criteria. Most lenders offer both, although some smaller outfits only have one or the other available.

Property is a popular long term investment - many consider it a safer bet than other growth assets like shares. In Australia, it can be particularly attractive because of the tax breaks available to property investors.

Investment home loan rates in 2024

Investment home loan rates tend to fluctuate in tune with the RBA cash rate. In April 2022, when the cash rate was at the all time low of 0.10%, the average rate on new investment home loans (principal and interest) was about 2.7% p.a according to the RBA. As the cash rate increased, so too did investment home loan rates.

Compare Investment Home Loans

By comparing various lenders and mortgage products, as well as understanding eligibility requirements, a property investor can ensure they find a home loan with all the features they need AND a competitive interest rate.

These are some of the major factors a prospective investor should consider when shopping for a new home loan:

Best investment home loan interest rates

Perhaps the most obvious factor a would-be borrower should consider is a home loan’s interest rate. Even a small change in an investor’s home loan interest rate – for example just 50 basis points – can have a big impact on overall returns.

30-Year Investment Home Loan: 6.50% p.a. vs 7.00% p.a.

Loan amount Monthly repayments: 6.50% p.a Monthly repayments: 7.00% p.a Monthly savings: 6.50% p.a. vs 7.00% p.a. Savings over life of loan: 6.50% p.a. vs 7.00% p.a.
$300,000 $1,896.20 $1,995.91 $99.71 $35,887.31
$400,000 $2,528.27 $2,661.21 $132.94 $47,856.09
$500,000 $3,160.34 $3,326.51 $166.17 $59,824.79
$600,000 $3,792.41 $3,991.81 $199.40 $71,792.28
$700,000 $4,424.48 $4,657.12 $232.64 $83,751.71

Calculations made using Savings.com.au's Home Loan Comparison Calculator.

It’s also important to consider whether a fixed or variable rate is more suitable to an individual’s risk tolerance and market expectations.

Finally, mortgage lenders must provide a comparison rate, which factors in both the interest owed on a home loan product and any additional costs or fees charged to a borrower. Comparing one product’s comparison rate against another's can be a solid way to identify which offers more bang for buck.

Loan features

Loan features like unlimited extra repayments, redraw facilities, and offset accounts can significantly influence the success of a person’s property investment journey. If any of the preceding terms are unfamiliar to you, we’d recommend reading up on them as soon as possible because each can help lower the overall cost of the loan.

Fees and charges

It’s important to be aware of all associated fees, such as application fees, ongoing service fees, and early repayment fees.

And don’t forget, some loans might have lower interest rates but higher fees, which could affect the total cost - this is where the comparison rate comes in handy.

P&I repayments or interest only

Investment property loans can have either principal and interest (P&I) or interest-only (IO) repayments. Knowing which is more suited to you depends on your investment strategy.

Many property investors choose to make IO repayments, as they might be aiming to capitalise on the eventual sale of their property and don’t value paying down their debt in the meantime.

On the other hand, another investor might wish to pay off their investment mortgage entirely, so to eventually stop the flow of regular repayments.

Investment home loans in Australia

Property investing is big business in Australia. Over the twelve months to September 2024, Australian lenders wrote about $134.6 billion worth of investment home loans. For comparison, new owner occupier loans over the same period totalled about $227.8 billion

Investment home loan lenders

Most Australian lenders who offer home loans deal with property investors. As of October 2024, these are the ten biggest banks in the investment home loan market, based on the value of their investment home loan books.

Rank Bank Value - October 2024 ($AUD billion)
1 Commonwealth Bank $188.845
2 Westpac $160.024
3 NAB $109.099
4 ANZ $100.857
5 Macquarie Bank $47.533
6 Bank of Queensland $17.570
7 Suncorp $15.303
8 Bendigo & Adelaide Bank $14.784
9 ING $10.371
10 HSBC $9.534

However, the big banks don’t necessarily offer the best deals. Smaller institutions often offer lower interest rates on investment home loans, something you might discover for yourself using the comparison table above.

Investment home loan vs Owner occupier home loans

There are usually a few differences between investment and owner occupier home loans:

Criteria Investment Home Loan Owner-Occupier Home Loan
Interest Rate Typically higher due to increased risk Generally lower
Eligibility Requirements May have stricter criteria due to the nature of the investment Standard criteria, normally focused on the borrower's ability to pay
Loan-to-Value Ratio (LVR) Often capped at 90% Regularly up to 95%
Deposit Requirements Higher deposit usually required (e.g., up to 10% or more of property value, with the potential for LMI) Lower deposit often possible (as low as 5% of property value with LMI)
Tax Implications Annual loss made on an investment property can be offset against taxable income. Generally, no direct tax benefits

Specific interest rates, eligibility requirements, and product features will vary between lenders, with some likely to offer property investors far better deals than others.

Why do investment home loans have higher rates than owner-occupier mortgages?

Investment home loans generally have higher interest rates than owner occupier mortgages because lenders generally consider investment loans a bit riskier. The default rate (borrowers who can no longer make their repayments) tends to be higher on investment loans, which makes sense when you think about it - most people will fight harder to hold on to their home than they would an investment.

Investors also often rely on rental income to pay some or all of the mortgage repayments related to their investment properties. This income can be considered less stable than other forms of income (salary for example), as tenant turnover can lead to periods wherein a property is unoccupied.

For similar reasons, many banks and lenders require a larger deposit from investors to secure a mortgage.

What tax benefits are there for property investors?

The favourable tax environment for property investors is one reason why property investing is common in Australia. For instance, investors with negatively geared properties can deduct their annual losses against their taxable income.

Basically, investors earn an income from rent, but also have a bunch of expenses involved with running a rental property. Interest on the investment home loan is typically the largest, but there can also be landlord insurance, land tax, property manager or body corp fees, the list goes on. As these expenses are used to generate income, they are generally all tax deductible.

If a property generates more rental income than the sum of all these costs, it’s ‘positively geared’. When interest and other expenses exceed rental income, the property is ‘negatively geared’ and in Australia, this deficit can be offset against the owner's other taxable income.

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Frequently Asked Questions

In Australia, the 'big four' banks - CommBank, Westpac, ANZ, and NAB - dominate the banking landscape. Their extensive reach and brand recognition often make them go-to options for investment home loans. But that doesn't necessarily mean they're the best investment mortgage lenders.

The big four banks generally offer a range of investment home loan products. They typically provide numerous branch locations, extensive customer service, and diverse products. However, big four interest rates for investment loans might not always be the most competitive in the market.

Smaller banks, credit unions, and non-bank lenders can offer lower interest rates and a more personalised service. Some may also provide more flexible lending criteria and innovative loan products tailored to investors' specific needs.

Don't always avoid the major banks though - it's just important to check out all your options!

The eligibility criteria for investment home loans generally differ from those for owner-occupier home loans due to the higher risk associated with investment properties.

Key eligibility criteria typically includes stable and sufficient income – enough to cover loan repayments and still allow for financial security. Some lenders may also factor in the rental income that will presumably come from an investment property.

A good credit history can also be essential in securing a loan with favorable terms, while lenders typically require a lower LVR for investment properties – usually not more than 80% to 90%. If a property investor has a deposit of less than 20%, they might also be required to pay Lenders Mortgage Insurance (LMI).

Lenders will generally also assess your existing debts against your income to ensure you can manage additional loan repayments, and many might restrict the property types or locations they fund. For instance, some lenders won’t fund the purchase of single bedroom units or properties in rural locations.

Like any investment, buying a rental property comes with a set of risks. Property prices can go up or down, as with any asset, and are not immune from fluctuating with economic conditions. Rental income can also be unstable due to factors like tenant turnover, vacancy periods, or tenants defaulting on rent.

Like other mortgage-holders, property investors are also at risk of experiencing interest rate rises, especially those with variable-rate loans (see above).

Anyone considering investing in property should weigh up their options carefully and seek independent advice when needed.

Property investors can absolutely refinance their home loans.

Refinancing an investment home loan can offer several advantages, including lower interest rates, access to equity, and improved loan features.

Refinancing to a loan with a lower interest rate or more favourable features can make a notable difference to the size of an investor's mortgage repayments and potentially save tens of thousands over the life of their loan.

Furthermore, the equity that is built up in bricks and mortar is notoriously hard to access, but refinancing offers a means to utilise it - e.g. as a deposit on another investment property, to fund renovations, or to buy a car.

If you're considering refinancing your investment home loan, check out some of the market's best rates by browsing the comparison table above.

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