Investment Loan Rates: A Complete Guide for Australian Investors (2026)

Investment loan rates in Australia currently range from around 5.89% to 6.99% for variable products and 5.49% to 6.39% for fixed terms, depending on your lender, loan-to-value ratio, and whether you choose interest only or principal and interest repayments. That spread might not look like much on paper, but on a $650,000 investment loan it translates to tens of thousands of dollars over the life of the loan.

This guide breaks down exactly how investment home loan rates work in 2026, what the major banks and lenders are charging, and how to structure your loan to keep more money in your pocket. Whether you are buying your first investment property or adding to a growing portfolio, understanding these rates - including the comparison rate, the standard variable rate, and any package discounts on offer - is the difference between a home loan product that works for you and one that drains your cash flow every month.

What Are Investment Loan Rates?

Investment loan rates are the interest rates that Australian lenders charge on home loans used to purchase investment properties. These rates are separate from - and almost always higher than - the rates offered on owner-occupied lending for the home you live in.

From a lender's perspective, an investment property loan carries more risk. If an investor hits financial trouble, they are more likely to default on their investment loan before the mortgage on their own home. APRA also requires banks to hold more capital against investment lending, and that cost gets passed on to borrowers. Beyond this baseline premium, lenders often adjust rates based on the specific risk profile of the borrower and loan structure - your credit score, deposit size, income stability, and existing debt all influence the final rate you are offered.

In practice, this means investors pay a premium of around 0.25% to 0.60% above owner-occupied lending rates. On a $650,000 loan, a 0.40% premium adds roughly $2,600 per year in additional interest - or $78,000 over a 30 year loan term. That is why comparing investment home loan rates - and always checking the comparison rate, not just the advertised rate - is one of the highest-impact financial decisions you will make as an investor.

Current Investment Home Loan Rates in Australia (2026)

As of April 2026, investment home loan rates sit within a broad range depending on the type of product you choose:

Variable rate investment loans:

• Big four banks (CBA, Westpac, ANZ, NAB): 6.09% - 6.79%
• Second-tier lenders (Macquarie, ING, Suncorp): 5.89% - 6.49%
• Online lenders (Athena, loans.com.au, Ubank): 5.89% - 6.29%

Fixed rate investment loans:

• 1 year fixed: 5.49% - 5.99%
• 2 year fixed: 5.59% - 6.09%
• 3 year fixed: 5.69% - 6.19%
• 5 year fixed: 5.89% - 6.39%

Note that fixed interest rates are set for the loan's fixed term only. Once the fixed term ends, the loan reverts to the standard variable rate (minus any applicable discount), which may be significantly higher. Always check the comparison rate for fixed products - it is calculated using the standard variable rate that applies after the fixed term.

These rates assume a loan to value ratio of 80% or less and principal and interest repayments. If you are borrowing above 80% LVR or choosing interest only repayments, expect to pay 0.20% to 0.60% more on top.

Key terms that apply to most fixed rate home loan products:

The Reserve Bank of Australia (RBA) sets the cash rate, which directly influences what lenders charge. After a series of cuts through 2025 and into early 2026, the cash rate sits at 3.60% as of April 2026. When the RBA adjusts the cash rate, variable lending rates typically move in step within a few weeks.

Keep in mind that the advertised rate is rarely the rate you will actually pay. Most lenders offer discounted rates below their standard variable rate - sometimes called the "rate discount" or "further discount" - for new loans, larger loan amounts, or package home loan deals. It pays to ask what discount is available and always check the comparison rate before you sign the loan contract. The comparison rate tells you the true cost of the loan product, including fees and charges that are not reflected in the headline interest rate.

Investment Home Loan vs Owner Occupier Loans

The gap between investment home loan rates and OO loans comes down to three factors:

1. Interest rate premium

Owner-occupied lending currently starts from around 5.69% variable, while investment loans start from 5.89%. That gap widens further for interest only products, where the investor premium can reach 0.50% or more.

2. Lending criteria

Lenders assess investment loans differently when calculating your serviceability. For owner-occupied lending, your full income is assessed. For investment loans, lenders typically only count 80% of the expected rental income toward your borrowing capacity. They also stress-test your ability to repay at a buffer rate (usually 3% above the actual loan interest rate), which reduces how much you can borrow.

3. Loan features and fees

Investment loans may come with different fee structures. Some lenders waive annual fees for OO loans but charge them on investment products. Others restrict loan features like redraw facility access or offset functionality on their cheapest investment rates. Always check what fees and charges are included as part of the loan product before you apply.

Understanding this difference matters because many investors hold both an owner-occupied home loan and one or more investment property loans. Structuring which loan gets extra repayments first - and whether to use an offset on your investment loan versus your home loan - can save or cost you thousands depending on your financial situation.

Fixed vs Variable Loan Interest Rates for Property Investors

Choosing between fixed and variable loan interest rates is one of the most common decisions investors face. Neither is universally better - it depends on your cash flow needs, your view of where rates are heading, and how long you plan to hold the property.

Variable Rate Investment Loans

Variable rate loans move when the lender decides to change them, usually in response to RBA cash rate decisions. The terms and conditions of your loan specify how and when your lender can apply rate changes. The key advantages for investors:

• Flexibility: Most variable loans allow unlimited extra repayments and a redraw facility.
• No break costs: You can refinance or sell the property without early repayment fees.
• Offset access: Variable loans almost universally include offset functionality, which reduces the interest you pay without locking away your cash.

The downside is uncertainty. If the RBA raises the cash rate, your monthly home loan repayments increase - uncomfortable for investors with tight cash flow from a negatively geared property.

Fixed Rate Investment Home Loans

Fixed rate investment home loans lock your interest rate for a set period - typically 1 to 5 years. During the fixed term, your home loan repayments stay the same regardless of what the RBA does. The fixed interest rate you agree to at settlement is locked into your loan terms for the entire lock-in period.

Key benefits:

• Payment certainty: You know exactly what your repayments will be, making cash flow forecasting accurate.
• Protection against rate rises: If you fix at 5.69% and variable rates climb to 6.50%, you save the difference.

Key drawbacks:

• Break costs: If you sell or refinance during the fixed term, early repayment fees can run into thousands of dollars.
• Limited extra repayments: Most fixed rate products cap additional repayments at $10,000-$20,000 per year.
• No offset: Many lenders do not include offset functionality on fixed rate products.
• Rate risk works both ways: If variable rates drop below your fixed interest rate, you are locked in at the higher rate.

When you apply for a fixed rate home loan, always check the comparison rate - it will include the fees and charges that apply once the fixed term ends and the loan reverts to the standard variable rate.

Fixed vs Variable: Key Differences

Both fixed and variable loan product types include standard terms and conditions specifying how rate changes are applied and how included features operate.

Split Loans

Many investors use a split loan structure - fixing a portion (say 60%) and leaving the rest variable. This gives you some payment certainty on the fixed portion while maintaining flexibility on the variable portion. It is a practical middle ground, especially in uncertain rate environments.

How the Comparison Rate Works

Every bank and lender is legally required to show a comparison rate alongside their advertised interest rate. The comparison rate factors in the standard fees and charges associated with the loan - including application fees, ongoing fees, and discharge fees - and expresses them as a single annual percentage.

For example, a bank might advertise an investment loan at 5.99% with a comparison rate of 6.14%. That 0.15% gap represents the cost of fees and charges spread over the loan term. Always check the comparison rate, not just the headline interest rate, when comparing home loan products.

One limitation: the comparison rate is calculated on a standard $150,000 loan over 25 years. On a $650,000 loan over 30 years, the fee impact as a percentage will differ. So while the comparison rate is a standardised comparison tool, it does not perfectly reflect your individual loan terms.

Two loans with the same comparison rate can have very different features - one might include offset functionality and unlimited extra repayments, while the other offers a bare-bones product. What matters most is the total cost over your expected holding period, including fees and charges, rate discounts that might expire, and features that reduce your effective interest rate.

Interest Only vs Principal and Interest Repayments for Investment Loans

This is the big structural question for investment loans. Do you pay interest only or principal and interest?

Interest Only Investment Loans

With IO repayments, you only pay the interest charges each month. On a $650,000 loan at 6.29%, your monthly IO repayment is approximately $3,407.

The appeal:

• Lower monthly repayments: $3,407 versus $4,020 for P&I ($613 per month saving).
• Higher tax deductions: Every dollar of your repayment is interest, maximising your tax deduction.
• Cash flow flexibility: Redirect the saving into an offset account on your owner-occupied loan or toward your next deposit.

The risks:

• No equity growth: Your loan balance stays the same. Growth only comes from property value changes.
• Higher total interest: Over 5 IO years you pay approximately $204,000 versus $183,000 with P&I - an extra $21,000.
• Rate premium: Most lenders charge 0.20% to 0.40% more for IO terms.
• Revert shock: When the IO period ends, the loan reverts to P&I on a shorter remaining term, causing a sharp increase in home loan repayments.

Principal and Interest Investment Home Loans

With P&I repayments, each monthly payment covers both the interest charges and a portion of the loan balance. On a $650,000 loan at 6.09% over 30 years, home loan repayments are approximately $3,936 per month.

The advantages:

• Lower loan interest rate: P&I investment home loans attract a lower interest rate than IO equivalents.
• Builds equity: You are actively paying down your loan balance regardless of market changes.
• Lower total interest: Over 30 years you pay significantly less interest overall.
• Better refinancing position: Improved LVR over time may qualify you for further discounts when you refinance.

The right choice depends on your broader financial strategy. Cash flow strategies may favor interest-only repayments - keeping monthly outlays low and maximising tax deductions - while longer-term growth strategies may favor P&I loans that build equity and reduce debt over time. Investors using a negative gearing strategy with multiple properties often prefer IO to maximise deductions and cash flow. Those focused on building equity or approaching retirement typically favour P&I home loan repayments.

How Your Loan to Value Ratio LVR Affects Investment Loan Rates

Your loan to value ratio - the amount you borrow as a percentage of the property value - is one of the biggest factors in determining what investment loan rate you receive. Most lenders structure their interest rates in LVR tiers:

Investment properties often require a larger deposit compared to owner-occupied properties, which can be a barrier for some potential investors. Borrowing above 80% LVR triggers lenders mortgage insurance (LMI) - a one-off cost protecting the lender. On a $650,000 property at 85% LVR, LMI could cost $12,000-$18,000. Getting below 80% eliminates LMI and unlocks significantly better investment loan rates.

Use PropBoss's loan repayment calculator to model different LVR scenarios and see how the rate and repayment changes.

Home Loan Interest: What Investors Actually Pay

Understanding home loan interest on an investment property goes beyond just looking at the advertised rate. What you actually pay is influenced by several factors working together.

The standard variable rate is the reference rate your lender sets - the highest published rate. The standard rate forms the basis from which discounts are applied, and lenders can change it independently of RBA decisions.

Your actual rate is the standard rate minus any discounts. These might include: new customer discounts (0.50%-1.50% off the standard rate), package home loan discounts for bundling products, loyalty retention discounts, LVR-based discounts, or professional discounts for certain credit profiles.

Your effective rate is what you pay after accounting for offset functionality. With a $650,000 loan at 6.09% and $50,000 in an offset, you only pay interest on $600,000 - an effective rate closer to 5.62%.

Here is a real-world example of how these layers stack:

That is a 1.68% difference between the headline standard rate and your effective rate - saving you $10,920 per year in home loan interest.

The key lesson for investors: always negotiate beyond the advertised rate, and always use an offset if your home loan product includes one.

How to Compare Investment Home Loan Products

With dozens of home loan products available from banks, credit unions, and non-bank lenders, the comparison process can feel overwhelming. Here is a structured approach to evaluate any loan product before you apply.

Step 1: Always check the comparison rate

The comparison rate includes fees and charges not reflected in the advertised interest rate. A loan advertised at 5.89% with a comparison rate of 6.20% costs more over its full terms than one advertised at 5.99% with a comparison rate of 6.05%.

The table below shows how the comparison rate changes depending on the product type and whether fees are included:

Always check the comparison rate, not just the headline rate. Two products with similar advertised rates can look very different once fees and charges are included.

Step 2: Understand the standard rate and your discount

Always ask what the lender's standard variable rate is and what discount applies. Ask whether the discount is ongoing or applies only for an introductory period - lenders may reduce or remove the discount in future if your loan terms allow it.

Step 3: Evaluate package inclusions

Many banks offer package home loan products that bundle your investment loan with a credit card, transaction account, and offset functionality for a flat annual fee (usually $395 per year). A package home loan can deliver further discounts off the standard rate - sometimes 0.50% to 0.75% - which more than covers the package fee on larger loans. Check exactly what is included as part of the package and whether the package discount is reflected in the comparison rate.

What Is Typically Included in a Package Home Loan

Understanding what is included in a package helps you compare the terms across different banks:

The interest rate discount included in a package home loan is typically ongoing - not just for an introductory period. Confirm this in the loan terms. If the standard rate changes due to RBA decisions or bank policy, your discounted rate changes by the same amount.

Step 4: Review all fees and charges

Fees and charges that should be included in your total cost comparison:

• Application or establishment fee ($0-$600)
• Annual package fee ($0-$395 per year)
• Ongoing monthly fees ($0-$15 per month)
• Valuation fees ($300-$600)
• Discharge fee ($150-$350)
• Break costs if you exit a fixed rate home loan early

Step 5: Check the loan features included

A lower comparison rate is worth less if the product lacks features you need. Key features to confirm are included as part of your loan product:

• Offset functionality (reduces interest without affecting your credit record)
• Unlimited extra repayments
• Redraw facility
• Loan splitting capability

Step 6: Check the revert standard rate on fixed products

If you apply for a fixed rate home loan, clarify what standard variable rate your loan reverts to when the fixed term ends. Some lenders revert to an uncompetitive standard rate with no ongoing discount included. The comparison rate for fixed home loan products is calculated using this revert standard rate - so always check it in the loan terms before you apply.

Once you have shortlisted home loan products with comparable comparison rates and features, consider applying with a mortgage broker who can negotiate further discounts that are not publicly advertised.

---

How Rental Income Affects Your Investment Home Loan

Rental income is fundamental to how banks assess your investment home loan application and how your property performs once settled.

During the application: Lenders count 80% of gross rental income when calculating borrowing power. The 20% "haircut" accounts for vacancy, management fees, and maintenance. On $550 per week in rent ($28,600 per year), the lender counts $22,880.

Once the property is settled, rental income directly affects your monthly cash flow:

This property is negatively geared - the interest portion of the repayment (approximately $3,299 in month one) and other expenses are tax deductible, reducing the after-tax cost significantly. The costs associated with maintaining an investment property - including repairs, insurance, and management fees - can add up and impact overall profitability, which is why tracking every expense matters.

On the upside, investment properties can appreciate in value over time, potentially leading to capital gains when sold. This long-term growth, combined with rental income and tax benefits, is why many Australians continue to invest in property despite the holding costs.

PropBoss automatically tracks every rental payment, loan repayment, and deductible expense across your portfolio, generating ATO-compliant reports at EOFY. Use the PropBoss loan repayment calculator to model how different loan interest rates affect your cash flow.

Home Loan Repayments: A Worked Example

Based on a $650,000 purchase, 20% deposit ($130,000), $520,000 loan at 80% LVR over 30 years:

The IO option saves $334 per month during the IO period but costs $120,780 more in total interest over the loan term. The fixed rate option (Option C) delivers the lowest comparison rate and lowest repayments during the fixed term, with certainty against interest rate changes for 3 years.

A small difference in interest rate or loan structure compounds significantly over time.

Use PropBoss's loan repayment calculator to compare P&I, IO, fixed, and variable scenarios with your own numbers.

Investment Loan Features to Compare

The interest rate gets the most attention, but the loan features attached to your investment home loan product can be worth more than a small rate difference. Here is a summary of what to check is included as part of any loan product before you apply:

Offset Account

An offset is a transaction account linked to your loan. The balance is deducted from your loan balance for the purpose of calculating interest. If you owe $520,000 and have $40,000 in offset, you only pay interest on $480,000.

For investors, this is powerful because:

• It reduces the interest you pay without making extra repayments (funds remain accessible)
• Interest saved is not taxable income
• You can use it to park rental income before quarterly tax payments

Not all home loan products include offset functionality. Some banks only include it as part of a package home loan, and fixed rate products may either exclude it or charge an additional fee. Check whether offset is included as part of your loan product before you apply.

Read our full guide: Offset Accounts for Investment Properties: How Much Interest Can You Actually Save?

Redraw Facility

A redraw facility lets you withdraw extra repayments you have made above the minimum. It is similar to an offset in that extra funds reduce your home loan interest, but there are important tax differences.

For investment loans, be careful with redraw. Funds withdrawn for personal use may not be tax deductible - the loan becomes "mixed purpose" and you must apportion deductions. An offset avoids this entirely because the funds are never technically applied to the loan.

Rate Lock Feature

If you apply for a fixed rate home loan with settlement several weeks away, a rate lock lets you secure today's fixed interest rate for a fee (typically $500-$750). This protects you if interest rates change before settlement. Check whether rate lock is included as part of your loan product's terms or comes with additional charges.

Lump Sum Payment Strategies for Investment Loans

Making a lump sum payment on your investment loan can dramatically reduce total interest paid - but the strategy depends on your loan terms and whether you are prioritising tax efficiency or debt reduction.

If you apply a $20,000 lump sum to a $520,000 loan at 6.09% in year 1, you save approximately $45,000 in interest over the life of the loan and pay it off 14 months earlier. But if that $20,000 was instead placed in an offset account, you get the same interest saving while the funds remain fully accessible.

The key principle: check whether your home loan product includes an offset and review the loan terms before deciding. For most investors, the offset strategy wins because it provides the same interest saving with full liquidity. The exception is if you are selling the property soon and want to reduce the loan balance before settlement.

How to Get the Best Investment Home Loan Rate

Getting the best investment home loan rates means presenting as a low-risk borrower, understanding what discounts and package deals are available, and knowing how to negotiate.

Before You Apply: Strengthen Your Position

Before you apply for any home loan product, prepare your financial position:

• Reduce credit card limits (unused credit limits still count against your borrowing capacity)
• Pay down personal debts to strengthen your credit history and credit score
• Ensure rental properties are achieving market rent
• Review bank statements - lenders check these when you apply

A clean credit history helps when you apply. In Australia, credit scores above 700-740 (on the Equifax scale) are typically considered excellent and help secure more favorable rates and larger discounts. Multiple recent credit applications, missed payments, or defaults drag your score down and can reduce the discount a lender offers or limit which home loan products are available to you.

Lower Your LVR to Access Better Fixed and Variable Rate Discounts

LVR is one of the biggest levers on the discount you receive, whether you are applying for a fixed rate or variable home loan product. Getting below 70% typically unlocks a further discount versus the 80% LVR tier. Strategies to improve LVR: use equity from existing properties, make extra repayments on current loans, or consider a smaller property to stay within a lower LVR band.

Use a Mortgage Broker

Brokers have access to dozens of banks and home loan products and know which lenders are actively competing for investment business. They can often access package discounts and fixed or variable rate discounts that are not publicly advertised - particularly from banks running special campaigns for new investment customers through the broker channel.

Negotiate with Your Current Bank

If you already have an investment loan, your current rate may no longer be competitive. Call your bank's retention team and come prepared with:

• Two or three competitor comparison rates
• Your LVR and current credit history
• Your repayment record

Most banks will apply a further discount rather than lose your business. If they refuse to adjust the rate or update the package terms, it may be time to consider refinancing to a better home loan product.

Tax Implications of Investment Loan Interest for Property Investors

The tax treatment of home loan interest on investment properties is one of the primary reasons investors structure their loans the way they do.

Interest Deductions

The ATO allows you to claim the interest on a loan used to purchase an investment property as a deduction. This includes interest on the original purchase loan plus any loans for repairs, renovations, or improvements.

If you pay $32,000 in home loan interest in 2025-26 and your marginal tax rate is 37% (plus 2% Medicare levy), the tax benefit is approximately $12,480. That reduction in your effective loan interest rates is one reason investors prioritise interest-only terms over P&I terms in some strategies.

Negative Gearing

Negative gearing occurs when investment property expenses (including loan interest) exceed rental income. The resulting loss reduces your total taxable income. In our earlier example, the $25,440 annual loss at a 39% marginal rate drops to an after-tax cost of approximately $15,518 per year.

For a deeper look at negative gearing: Negative Gearing Explained: How It Works for Australian Property Investors in 2026

The Redraw Trap

If you redraw funds from an investment loan for personal use, the interest on the redrawn amount is no longer deductible. The loan becomes "mixed purpose" and you must apportion your deductions. This is why experienced investors consistently recommend using an offset account instead of redrawing - the offset achieves the same home loan interest saving without changing the loan's tax character.

Always discuss loan structure changes with your accountant. The tax implications of getting this wrong can outweigh any interest rate savings.

Current Market Conditions: What Property Investors Should Know in 2026

The 2026 investment lending market directly affects what interest rate you can get, what package discounts are available, and how easy it is to borrow.

RBA rate changes: The RBA began cutting from 4.35% in February 2025. By April 2026, the cash rate sits at 3.60% after cumulative cuts of 0.75%. Variable home loan interest rates have followed, though most banks have not passed on the full change. Markets are pricing in one more cut, which would bring the standard rate baseline lower again for variable product holders.

APRA lending buffers: APRA still requires lenders to assess borrowers at a buffer rate of 3% above the actual loan interest rate - so at 6.09%, the assessment interest rate is 9.09%. This is the primary constraint on borrowing capacity for investors with multiple properties. No changes to this policy have been announced, but discussions about reducing the buffer are ongoing.

Bank competition for investment lending: After tightening criteria in 2023-2024, most major banks are actively competing for investment home loan business again. Package discounts of up to 1.50% off the standard variable rate are available for new customers through broker channels. Fixed rate discounts have also become more competitive as banks seek to lock in new borrowers. If you have not reviewed your home loan product in the past 12 months, you are likely paying more than necessary.

Consumer credit protections: All banks and mortgage brokers providing home loan advice must hold an Australian credit licence. When you apply, your lender must assess whether the loan terms and package are suitable for your circumstances - verifying that the interest rate, fees, and charges are not unsuitable for your financial situation. Your credit file is checked as part of this process.

Property market context: National median prices have stabilised, with Brisbane, Perth, and Adelaide continuing to outperform. For investors, this means existing holdings may support lower LVRs - potentially unlocking a better rate tier or a further discount without additional repayments.

When to Refinance Your Investment Loan

Refinancing means replacing your current investment home loan with a new product - either with the same bank or a different lender. It is worth considering when:

• Your current variable rate is more than 0.50% above what competitors are offering
• Your fixed term has ended, the loan has reverted to a high standard variable rate, and no further discount has been applied
• The interest rate on your current product has not changed in line with RBA cuts
• Your LVR has improved and you now qualify for a better rate tier or a further discount
• Your current home loan product lacks features you need (offset, loan splitting capability)

The fees and charges to factor in:

• Discharge fee from your current lender ($150-$350)
• Application or establishment fee with the new lender ($0-$600)
• Valuation fee ($300-$600)
• Government fees for new mortgage registration ($150-$300 depending on state)
• Break costs if you are still in a fixed term (can be thousands if interest rate changes are significant)

Always check the comparison rate on the new home loan product and factor in all fees and charges - the comparison rate includes those costs to make comparison straightforward. A general rule: if the rate saving covers the switching costs within 12 months, refinancing is likely worthwhile. On a $520,000 loan, a 0.30% interest rate reduction saves $1,560 per year - enough to cover typical fees in under a year.

For a full breakdown of when refinancing makes sense: Should You Refinance Your Investment Property Loan: A Complete Guide

Frequently Asked Questions

What is the average investment loan rate in Australia in 2026?

The average variable investment home loan rate across major banks is approximately 6.29% as of April 2026. Rates vary based on LVR, repayment type, and lender. The most competitive rates start from 5.89% for variable P&I with LVR under 80%. Always check the comparison rate alongside the headline rate.

Are investment home loan rates higher than owner occupier rates?

Yes. Investment home loan rates are typically 0.25% to 0.60% higher than equivalent owner-occupied lending rates. The gap is largest for interest only investment loans. This premium reflects the higher risk that banks and APRA assign to investment lending.

Should I choose fixed or variable for an investment property?

Variable offers flexibility (offset, extra repayments, no break costs) and suits investors who may sell or refinance within a few years. Fixed provides certainty on interest rate and repayments during the fixed term, and protects against interest rate changes. Many investors split their loan - fixing a portion for certainty and keeping the rest variable. When comparing fixed rate products, always check the revert standard variable rate that applies after the fixed term ends.

How much deposit do I need for an investment property loan?

Most banks require a minimum 10% deposit, though borrowing above 80% LVR triggers lenders mortgage insurance. A 20% deposit avoids LMI and accesses better loan interest rates. On a $650,000 property, that means $130,000 plus approximately $25,000-$35,000 for stamp duty and purchase costs.

Can I use equity from my existing property as a deposit?

Yes. If you have built equity in your home or another investment property, most banks allow you to use it as security for a new purchase, often without additional cash savings. Your total borrowing still needs to stay within acceptable LVR limits.

Is there a tool that automates investment loan tracking?

PropBoss tracks home loan repayments, home loan interest, and cash flow across all your investment properties with automated bank feeds and ATO-compliant reporting. The loan repayment calculator also lets you model P&I vs IO scenarios and compare rates.

What happens when my interest only period ends?

When your IO period ends (typically after 5 years), the loan reverts to P&I. Because the remaining term is shorter (25 years instead of 30), home loan repayments increase significantly - on a $520,000 loan at 6.29%, repayments jump from $2,727 to approximately $3,502 per month. Contact your lender before the revert date to negotiate a new IO period or explore refinancing.

How does the RBA cash rate affect my investment loan?

The RBA cash rate influences all variable loan interest rates in Australia. When the RBA changes the cash rate, most banks adjust their variable rates within weeks. Fixed rates are influenced more by bond market pricing. Rate changes to your variable loan will always be communicated in writing. You can track RBA decisions at rba.gov.au.

What fees should I expect on an investment loan?

Common fees and charges include an application fee ($0-$600), an annual package fee ($0-$395), valuation fees ($300-$600), and discharge fees ($150-$350). Always factor all fees and charges into your comparison - this is exactly why the comparison rate exists. A slightly higher rate with no fees can be cheaper than a lower rate with a $395 annual package fee.

Is it harder to get approved for an investment loan than a home loan?

Yes. Banks apply tighter serviceability assessments, count only 80% of rental income, and may require a larger deposit. A clean credit history and strong credit score, stable income, and low personal debts all improve your chances of approval. When you apply, prepare 2 years of tax returns, recent bank statements, and rental ledgers.

Take Control of Your Investment Loan

Your investment loan rate is not set and forget. The difference between a 5.89% and a 6.49% rate on a $520,000 loan is $3,120 per year - or $93,600 over 30 years. That money is better spent building your portfolio than sitting in a lender's margin.

Start by comparing the comparison rate on your current home loan product against competitors. Then model your numbers using the PropBoss loan repayment calculator to compare fixed vs variable, IO vs P&I, and different package and LVR scenarios - all with current 2026 rates.

PropBoss tracks your loan repayments, rental income, and every deductible expense across your entire portfolio automatically. Bank feeds categorise transactions, the depreciation engine tracks your schedules, and EOFY reports are ready when your accountant asks.

Plans start from $1/property/month. Start your free trial and see exactly where your investment loans stand today.