Investment loans
Investment loans are commonly priced differently from owner-occupied loans and may have different LVR limits and policy requirements.
Investment property
Investment finance, in plain terms.
How investment lending is assessed, how structure decisions play out, and the considerations worth understanding before you buy.
Updated 17 September 2026
Educational information — not personalised financial advice.
Investment lending follows the same mechanics as owner-occupied lending but is priced and assessed differently. Nothing on this page is a recommendation to invest or a personalised financial or tax opinion — it is general information about how the finance side works.
Loan structure
Whether loans are held separately or cross-collateralised affects flexibility later, particularly if you sell one property or want to release equity.
Deposit
Deposits for investment purchases may come from savings or from equity in an existing property. Each route has different implications for LVR and total borrowings.
LVR
Some lenders apply lower maximum LVRs for investment lending, and LMI still applies above the usual threshold.
Interest-only loans
Interest-only periods reduce repayments during the period but do not reduce the balance. Repayments typically step up once the period ends.
Borrowing capacity
Lenders assess rental income at a discount and include the full cost of holding the property in serviceability.
Cash flow
Rates, vacancy, management fees, rates and levies, insurance and maintenance all affect the cash position, not just the rent.
Common considerations
Tax treatment, ownership structure and long-term strategy sit outside finance. Speak with a qualified tax or financial adviser about those.
Tools
Run the numbers
Mortgage Repayment Calculator
Estimate repayments, total interest and how the balance falls over time.
OpenBorrowing Power Calculator
See an indicative borrowing range based on income, expenses and debts.
OpenStamp Duty Calculator
Estimate transfer duty and government costs in your state or territory.
OpenLoan-to-Value Ratio Calculator
Check your LVR and whether lenders mortgage insurance may apply.
OpenFAQ
Frequently asked questions
Where this comes from: Explanations are written from publicly available Australian lending and government information and are reviewed when policy changes. Confirm current figures with the relevant lender or state revenue office before relying on them.
Model the finance side first.
Understand repayments, LVR and borrowing position, then ask to be connected with a finance professional who works with investors.