Fact Checked
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Row Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.09% p.a. | 6.13% p.a. | $3,027 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | |||||||||||
5.99% p.a. | 6.01% p.a. | $2,995 | Principal & Interest | Variable | $0 | $250 | 60% |
| Promoted | Disclosure | |||||||||||
6.04% p.a. | 5.95% p.a. | $3,011 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | |||||||||||
5.99% p.a. | 6.01% p.a. | $2,995 | Principal & Interest | Variable | $0 | $350 | 60% |
| Disclosure | ||||||||||||
6.04% p.a. | 6.06% p.a. | $3,011 | Principal & Interest | Variable | $0 | $250 | 80% | Disclosure | |||||||||||||
5.99% p.a. | 6.24% p.a. | $2,995 | Principal & Interest | Variable | $248 | $null | 70% |
| Disclosure | ||||||||||||
6.14% p.a. | 6.20% p.a. | $3,043 | Principal & Interest | Variable | $0 | $835 | 80% | ||||||||||||||
6.19% p.a. | 6.54% p.a. | $3,059 | Principal & Interest | Variable | $0 | $295 | 80% | ||||||||||||||
6.16% p.a. | 6.29% p.a. | $3,049 | Principal & Interest | Variable | $null | $300 | 80% | ||||||||||||||
6.24% p.a. | 6.63% p.a. | $3,075 | Principal & Interest | Variable | $395 | $350 | 70% | ||||||||||||||
6.29% p.a. | 6.31% p.a. | $3,092 | Principal & Interest | Variable | $0 | $450 | 90% | ||||||||||||||
6.04% p.a. | 6.07% p.a. | $3,011 | Principal & Interest | Variable | $0 | $350 | 60% | ||||||||||||||
6.44% p.a. | 6.66% p.a. | $3,141 | Principal & Interest | Variable | $15 | $784 | 90% | ||||||||||||||
6.59% p.a. | 6.59% p.a. | $3,190 | Principal & Interest | Variable | $null | $null | 80% | ||||||||||||||
7.04% p.a. | 7.12% p.a. | $3,340 | Principal & Interest | Variable | $8 | $350 | 90% | ||||||||||||||
7.79% p.a. | 7.79% p.a. | $3,596 | Principal & Interest | Variable | $null | $160 | 95% | ||||||||||||||
5.94% p.a. | 6.28% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Disclosure |
Important Information and Comparison Rate Warning
Important Information and Comparison Rate Warning
Hot investment home loan rates in May
Property investors should always be on the lookout for a more competitive rate on your 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:
- Regional Australia Bank: Home Loan without Offset (LVR<60%) - 5.81% p.a. (5.82% p.a. comparison rate*)
- MOVE Bank: Everyday Investment Loan (LVR<90%) - 5.84% p.a. (5.89% p.a comparison rate*)
And fixed rates:
- Macquarie Bank - Investment Basic Three Fixed Home Loan LVR<70%, 5.35% p.a. (5.91% 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 May, 2025. 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 2025
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. As of March 2025 after the first cash rate cut for several years, investment rates might be about to start heading south again.
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 three months to December 2024, $32.4 billion of the total $87.2 billion worth of home loans written were for investing.
Investment home loan lenders
Most Australian lenders who offer home loans deal with property investors. As of March 2025, these are the ten biggest banks in the investment home loan market, based on the value of their investment home loan books.
| Rank | Bank | Value - March 2025 ($AUD billion) |
|---|---|---|
| 1 | Commonwealth Bank | $195.9b |
| 2 | Westpac | $162.6b |
| 3 | NAB | $110b |
| 4 | ANZ | $103.4b |
| 5 | Macquarie Bank | $50.2b |
| 6 | Bank of Queensland | $17.1b |
| 7 | Suncorp | $15.2b |
| 8 | Bendigo & Adelaide Bank | $15b |
| 9 | ING | $11.8b |
| 10 | HSBC | $9.8b |
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.
On this page
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Learn more about investing in property!
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Looking to buy property in Australia? Find out what rules and regulations are in place.
Should you buy a duplex as an investment?
Looking to invest in property and thinking about buying a duplex? Find out more about the pros, cons and what to consider.
Interest-only investment loans
Thinking of using an interest only investment loan for your property? See the latest rates and the pros and cons of interest only.
What is negative gearing?
Looking to learn more about negative gearing? Learn what it is, how it works and what you can claim!
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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