Buying an investment property or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for investors.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.19% p.a.
6.58% p.a.
$2,589
Principal & Interest
Variable
$0
$530
90%
Featured 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
6.29% p.a.
6.20% p.a.
$2,473
Principal & Interest
Variable
$0
$0
80%
Featured Refinance OnlyApply In Minutes
  • A low-rate variable investment home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.34% p.a.
6.36% p.a.
$2,486
Principal & Interest
Variable
$0
$350
60%
  • $0 application fee
  • Fast turnaround times
  • Estimate your borrowing power in as little as 1 minute
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.

Unfortunately for Australian renters who struggled to stay afloat last time around, 2024 is shaping up to be another difficult year. December 2023 saw a record low number of rental listings, while the opening weeks of 2024 saw median rent exceed $600 for the first time. While some analysts say moderating migration numbers and more stable interest rates could soften rental growth this year, rental stress is a reality facing a significant portion of Aussie tenants. According to CoreLogic, median rent is now 31% of the average income, above the typical threshold for rental stress.

The other side of the coin, rental income is increasing for investment property owners. While some landlords face restrictions that limit their earning potential, rental yield - the percentage of a property’s value it can earn in rent each year - has increased. According to Your Investment Property Magazine data, some Australian suburbs have even cracked 15% in annual rental yield.

The number one suburb for gross rental yield for houses was Tom Price in Western Australia. Tom Price is in Western Australia’s Pilbara region, known for its vast natural resources and as one of the mining capitals of Australia. As of the end of November '23, the median house price in Tom Price was $655,000 with a median advertised rent of $1,950, putting average rental yields at 15%.

For units, it was Bucasia in Mackay, Queensland. The median unit price in Bucasia was just $110,000, but with a median avertised rent of $355, putting rental yields at 17%.

See the full list of suburbs

How important are rental yields to property investors?

For investors, rental yield is a useful way to assess annual income, but there are plenty of other things to take into account as well, like vacancy rates, planned investment and other factors that could suggest strong capital gains.

Simon Pressley of Propertyology says basing property investments primarily on rental yields is a “flawed strategy”.

“At the end of the day, a few thousand dollars of income per year is nowhere near enough to retire on,” Mr Pressley told Savings.com.au.

“But a property that produces strong capital growth means hundreds of thousands of dollars' equity, enabling the investor to repeat the process, plus the option of converting equity into cash during the retirement years.”

He said the most important consideration should be selecting an area with good economic fundamentals as this is what drives capital growth.

“The next most important priority is buying a conventional asset - a standard house - in a central part of town. When it comes to sell, the conventional nature will attract a larger resale audience than other assets,” Mr Pressley said.

“Apartments produce higher rental yields than a conventional house in the same location, but Propertyology’s studies confirm that investing in asset types other than detached houses is surrendering half, or more, of your capital growth potential.”

What gives a suburb a strong rental yield?

Rental yield is how much income a property generates relative to its value. It’s calculated by dividing the annual rental income a property generates by its market value.

When the value of a property increases dramatically, the rental yield can decrease, because the rental income is smaller relative to the property value, but that doesn’t mean the property is earning any less.

Therefore, rental yields tend to be higher in areas where the demand for rent is higher than the demand for owner occupied property. Take Tom Price, where the average rental yield for houses was 15% in December 2023. The Pilbara region is one of Australia’s biggest mining regions, with huge deposits of minerals like iron ore. Demand for property is therefore more transient, as miners come and go. From April to November 2023, the median house price in Tom Price went from $652,500 to $655,000, a 0.003% increase. Over the same period, median rents went from $1,775 to $1,950, up 9.8%.

Likewise, Newman, South Headland and Nicol are other suburbs in or nearby to Pilbara that all feature in the top ten for houses, with South Hedland also appearing for units.

The majority of the suburbs in the top 100 lists lie outside of the capital cities of the respective states. For houses, only Brisbane City (96th), Moulden (Darwin, 98th) and Darwin City (72nd) made the cut from capital city statistical divisions. For units, as you’d probably expect, the capitals made a slightly better showing. There were 15 Greater Perth Suburbs, 12 from Darwin, three from Melbourne and one each from Brisbane and Adelaide that made the list, but that’s still well over half of the top rental yield suburbs coming from regional markets.

What will happen to rental yields in 2024?

Rental yields increase when the cost of renting becomes greater relative to property values. Throughout 2023, property prices increased, but at a lesser rate than rents. Here’s how we were sitting as of November '23:

State

Area

Property Type

Median Price

Weekly Median Advertised Rent

Gross Rental Yield

ACT

Metro

Houses

$957,000

$675

3.7%

ACT

Metro

Units

$600,000

$555

4.9%

NSW

Metro

Houses

$1,420,000

$700

2.7%

NSW

Metro

Units

$780,000

$650

4.4%

NT

Metro

Houses

$585,500

$650

5.8%

NT

Metro

Units

$381,500

$520

7.0%

QLD

Metro

Houses

$815,000

$580

3.9%

QLD

Metro

Units

$535,000

$525

5.4%

SA

Metro

Houses

$735,000

$540

4.0%

SA

Metro

Units

$485,000

$450

5.1%

TAS

Metro

Houses

$710,000

$540

4.0%

TAS

Metro

Units

$550,000

$460

4.4%

VIC

Metro

Houses

$902,500

$520

3.1%

VIC

Metro

Units

$635,000

$500

4.3%

WA

Metro

Houses

$630,000

$580

5.1%

WA

Metro

Units

$430,000

$525

6.6%

NSW

Country

Houses

$715,000

$550

4.0%

NSW

Country

Units

$600,500

$450

3.9%

NT

Country

Houses

$470,000

$550

6.1%

NT

Country

Units

$297,000

$410

6.9%

QLD

Country

Houses

$595,000

$570

5.2%

QLD

Country

Units

$550,000

$490

4.8%

SA

Country

Houses

$400,000

$375

5.1%

SA

Country

Units

$315,000

$280

4.9%

TAS

Country

Houses

$535,000

$440

4.3%

TAS

Country

Units

$410,000

$380

4.8%

VIC

Country

Houses

$580,000

$450

4.1%

VIC

Country

Units

$410,000

$370

4.7%

WA

Country

Houses

$462,750

$550

6.4%

WA

Country

Units

$320,000

$500

8.4%

Data from CoreLogic

A more stable cash rate is likely to be one of the defining features of the economic landscape in 2024. Most analysts agree it looks unlikely rates will go any higher than the current (as of February ‘24) 4.35%, and many are also predicting cuts around Q3. For renters, lower interest rates are likely to be positive: a lot of the huge growth to rents over the past eighteen months is likely due to landlords passing on the higher interest costs. As far as property prices go, conventional wisdom dictates that prices go up as rates go down (as buyers’ borrowing power improves), but 2023 saw prices go up even as rates increased, so ultimately any predictions might turn out to be futile.

Top 100 rental yield suburbs in Australia for houses

Suburb

Postcode

State

Median property Price

Median weekly advertised rent

Annual rental yield

1

Tom Price

6751

WA

 $655,000.00

 $1,950.00

15%

2

Kambalda East

6442

WA

 $119,000.00

 $320.00

14%

3

Scottville

4804

QLD

 $139,500.00

 $350.00

13%

4

Kambalda West

6442

WA

 $160,000.00

 $360.00

12%

5

Nickol

6714

WA

 $569,000.00

 $1,250.00

11%

6

Collinsville

4804

QLD

 $160,000.00

 $350.00

11%

7

South Hedland

6722

WA

 $425,000.00

 $897.25

11%

8

Newman

6753

WA

 $322,500.00

 $662.50

11%

9

South Boulder

6432

WA

 $246,250.00

 $500.00

11%

10

South Lismore

2480

NSW

 $245,000.00

 $482.50

10%

11

Millars Well

6714

WA

 $479,750.00

 $942.50

10%

12

Dysart

4745

QLD

 $190,000.00

 $370.00

10%

13

Capella

4723

QLD

 $187,500.00

 $365.00

10%

14

Baynton

6714

WA

 $700,000.00

 $1,350.00

10%

15

Port Hedland

6721

WA

 $715,500.00

 $1,350.00

10%

16

Mornington

4825

QLD

 $260,000.00

 $490.00

10%

17

Pegs Creek

6714

WA

 $480,000.00

 $900.00

10%

18

Ouyen

3490

VIC

 $180,000.00

 $335.00

10%

19

Merredin

6415

WA

 $190,000.00

 $350.00

10%

20

Boulder

6432

WA

 $285,000.00

 $520.00

9%

21

Rangeway

6530

WA

 $189,500.00

 $340.00

9%

22

Peterborough

5422

SA

 $140,000.00

 $250.00

9%

23

Depot Hill

4700

QLD

 $205,000.00

 $365.00

9%

24

Solomontown

5540

SA

 $183,500.00

 $325.00

9%

25

Nagambie

3608

VIC

 $650,000.00

 $1,145.00

9%

26

Moranbah

4744

QLD

 $330,000.00

 $580.00

9%

27

Mount Morgan

4714

QLD

 $205,000.00

 $360.00

9%

28

Townview

4825

QLD

 $257,000.00

 $450.00

9%

29

Moora

6510

WA

 $200,000.00

 $350.00

9%

30

Broken Hill

2880

NSW

 $190,000.00

 $330.00

9%

31

Port Pirie West

5540

SA

 $179,000.00

 $310.00

9%

32

Tennant Creek

860

NT

 $260,000.00

 $450.00

9%

33

South Kalgoorlie

6430

WA

 $315,000.00

 $545.00

9%

34

Cloncurry

4824

QLD

 $215,500.00

 $372.50

9%

35

Piccadilly

6430

WA

 $350,000.00

 $600.00

9%

36

North Lismore

2480

NSW

 $285,000.00

 $485.00

9%

37

Soldiers Hill

4825

QLD

 $297,000.00

 $500.00

9%

38

Blackwater

4717

QLD

 $210,000.00

 $350.00

9%

39

Somerville

6430

WA

 $480,000.00

 $800.00

9%

40

Ravensthorpe

6346

WA

 $210,000.00

 $350.00

9%

41

Sunset

4825

QLD

 $276,500.00

 $460.00

9%

42

Quorn

5433

SA

 $175,000.00

 $290.00

9%

43

Rockhampton City

4700

QLD

 $230,000.00

 $380.00

9%

44

West Lamington

6430

WA

 $387,500.00

 $640.00

9%

45

Bulgarra

6714

WA

 $515,000.00

 $850.00

9%

46

Charleville

4470

QLD

 $155,000.00

 $255.00

9%

47

Derby

6728

WA

 $225,000.00

 $370.00

9%

48

Pioneer

4825

QLD

 $250,000.00

 $410.00

9%

49

Cable Beach

6726

WA

 $620,000.00

 $1,000.00

8%

50

Moura

4718

QLD

 $219,000.00

 $350.00

8%

51

Kalgoorlie

6430

WA

 $345,000.00

 $550.00

8%

52

Broome

6725

WA

 $565,000.00

 $900.00

8%

53

Hannans

6430

WA

 $440,000.00

 $700.00

8%

54

Katherine South

850

NT

 $272,000.00

 $430.00

8%

55

Ingham

4850

QLD

 $210,000.00

 $330.00

8%

56

Happy Valley

4825

QLD

 $306,000.00

 $480.00

8%

57

Parkside

4825

QLD

 $276,000.00

 $430.00

8%

58

Charters Towers City

4820

QLD

 $212,250.00

 $330.00

8%

59

Healy

4825

QLD

 $386,000.00

 $600.00

8%

60

Longreach

4730

QLD

 $218,750.00

 $340.00

8%

61

Stapylton

4207

QLD

 $274,250.00

 $425.00

8%

62

Lismore

2480

NSW

 $320,000.00

 $495.00

8%

63

Blackall

4472

QLD

 $180,000.00

 $277.50

8%

64

Boddington

6390

WA

 $295,000.00

 $450.00

8%

65

Lamington

6430

WA

 $395,000.00

 $600.00

8%

66

Nebo

4742

QLD

 $246,000.00

 $370.00

8%

67

Home Hill

4806

QLD

 $200,000.00

 $300.00

8%

68

Wee Waa

2388

NSW

 $237,500.00

 $355.00

8%

69

Port Augusta

5700

SA

 $215,000.00

 $320.00

8%

70

Wagin

6315

WA

 $185,000.00

 $275.00

8%

71

Cobar

2835

NSW

 $203,000.00

 $300.00

8%

72

Darwin City

800

NT

 $433,750.00

 $640.00

8%

73

Whyalla Stuart

5608

SA

 $190,000.00

 $280.00

8%

74

Queenstown

7467

TAS

 $190,000.00

 $280.00

8%

75

Woodburn

2472

NSW

 $375,000.00

 $550.00

8%

76

Narrogin

6312

WA

 $230,000.00

 $335.00

8%

77

Allenstown

4700

QLD

 $310,000.00

 $450.00

8%

78

East Innisfail

4860

QLD

 $255,000.00

 $370.00

8%

79

Djugun

6725

WA

 $655,000.00

 $950.00

8%

80

Whyalla Norrie

5608

SA

 $200,000.00

 $290.00

8%

81

Katanning

6317

WA

 $235,000.00

 $340.00

8%

82

Cooktown

4895

QLD

 $350,000.00

 $500.00

7%

83

Brandon

4808

QLD

 $210,000.00

 $300.00

7%

84

Lochinvar

2321

NSW

 $478,500.00

 $680.00

7%

85

Barney Point

4680

QLD

 $275,000.00

 $390.00

7%

86

Larapinta

875

NT

 $425,000.00

 $600.00

7%

87

Exmouth

6707

WA

 $675,000.00

 $950.00

7%

88

Berrigan

2712

NSW

 $249,000.00

 $350.00

7%

89

Berserker

4701

QLD

 $297,500.00

 $417.50

7%

90

Hillston

2675

NSW

 $250,000.00

 $350.00

7%

91

Gilgandra

2827

NSW

 $250,000.00

 $350.00

7%

92

Queenton

4820

QLD

 $250,000.00

 $350.00

7%

93

Bicheno

7215

TAS

 $683,000.00

 $955.00

7%

94

Nulsen

6450

WA

 $240,000.00

 $335.00

7%

95

Clermont

4721

QLD

 $272,500.00

 $380.00

7%

96

Brisbane City

4000

QLD

 $445,000.00

 $620.00

7%

97

Utakarra

6530

WA

 $270,000.00

 $370.00

7%

98

Moulden

830

NT

 $365,000.00

 $500.00

7%

99

Park Avenue

4701

QLD

 $321,500.00

 $440.00

7%

100

Collie

6225

WA

 $292,500.00

 $400.00

7%

Top 100 rental yield suburbs in Australia for units (October '23)

Suburb

Postcode

State

Median property price

Median weekly rent

Annual rental yield

1

Bucasia

4750

QLD

 $110,000.00

 $355.00

17%

2

Baynton

6714

WA

 $400,000.00

 $1,200.00

16%

3

Middlemount

4746

QLD

 $135,000.00

 $320.00

12%

4

Koongal

4701

QLD

 $140,000.00

 $330.00

12%

5

Bulgarra

6714

WA

 $250,000.00

 $587.50

12%

6

Newman

6753

WA

 $192,000.00

 $450.00

12%

7

Moranbah

4744

QLD

 $255,000.00

 $580.00

12%

8

Boulder

6432

WA

 $201,750.00

 $450.00

12%

9

Cable Beach

6726

WA

 $307,000.00

 $640.00

11%

10

South Hedland

6722

WA

 $315,000.00

 $650.00

11%

11

Piccadilly

6430

WA

 $235,000.00

 $475.00

11%

12

Flinders View

4305

QLD

 $150,000.00

 $300.00

10%

13

New Auckland

4680

QLD

 $181,500.00

 $350.00

10%

14

Pegs Creek

6714

WA

 $425,000.00

 $800.00

10%

15

Roxby Downs

5725

SA

 $160,250.00

 $300.00

10%

16

Kalgoorlie

6430

WA

 $259,000.00

 $480.00

10%

17

Somerville

6430

WA

 $297,500.00

 $550.00

10%

18

Cranbrook

4814

QLD

 $177,500.00

 $320.00

9%

19

Bungalow

4870

QLD

 $206,000.00

 $365.00

9%

20

Currajong

4812

QLD

 $175,000.00

 $310.00

9%

21

Manunda

4870

QLD

 $198,000.00

 $350.00

9%

22

Darwin

800

NT

 $380,000.00

 $670.00

9%

23

Karama

812

NT

 $256,000.00

 $450.00

9%

24

Kununurra

6743

WA

 $267,500.00

 $470.00

9%

25

Orelia

6167

WA

 $208,000.00

 $360.00

9%

26

Bayswater

6053

WA

 $290,000.00

 $500.00

9%

27

Withers

6230

WA

 $183,000.00

 $315.00

9%

28

Hyde Park

4812

QLD

 $187,500.00

 $315.00

9%

29

Port Hedland

6721

WA

 $450,103.00

 $750.00

9%

30

Jubilee Pocket

4802

QLD

 $300,000.00

 $497.50

9%

31

Glendalough

6016

WA

 $292,750.00

 $480.00

9%

32

Driver

830

NT

 $275,000.00

 $450.00

9%

33

Gray

830

NT

 $257,500.00

 $420.00

8%

34

Broome

6725

WA

 $371,500.00

 $600.00

8%

35

Rosslea

4812

QLD

 $219,000.00

 $350.00

8%

36

Leanyer

812

NT

 $322,500.00

 $510.00

8%

37

Lockridge

6054

WA

 $269,500.00

 $425.00

8%

38

Whyalla Playford

5600

SA

 $165,000.00

 $260.00

8%

39

Cardwell

4849

QLD

 $210,000.00

 $330.00

8%

40

Millner

810

NT

 $302,500.00

 $475.00

8%

41

Condon

4815

QLD

 $255,000.00

 $400.00

8%

42

Blacks Beach

4740

QLD

 $287,500.00

 $450.00

8%

43

South Gladstone

4680

QLD

 $180,000.00

 $280.00

8%

44

Hermit Park

4812

QLD

 $206,000.00

 $320.00

8%

45

Bakewell

832

NT

 $290,000.00

 $450.00

8%

46

Earlville

4870

QLD

 $255,000.00

 $395.00

8%

47

Emerald

4720

QLD

 $220,000.00

 $340.00

8%

48

Moree

2400

NSW

 $175,000.00

 $270.00

8%

49

Mira Mar

6330

WA

 $250,000.00

 $385.00

8%

50

West Gladstone

4680

QLD

 $195,000.00

 $300.00

8%

51

Sadadeen

870

NT

 $247,500.00

 $380.00

8%

52

Pimlico

4812

QLD

 $215,000.00

 $330.00

8%

53

Coolalinga

839

NT

 $ 290,000.00

 $445.00

8%

54

Idalia

4811

QLD

 $267,500.00

 $410.00

8%

55

Douglas

4814

QLD

 $263,500.00

 $400.00

8%

56

Araluen

870

NT

 $310,000.00

 $470.00

8%

57

Aitkenvale

4814

QLD

 $223,000.00

 $335.00

8%

58

Cannonvale

4802

QLD

 $335,000.00

 $500.00

8%

59

East Mackay

4740

QLD

 $250,000.00

 $372.50

8%

60

Beresford

6530

WA

 $215,000.00

 $320.00

8%

61

Heatley

4814

QLD

 $190,000.00

 $282.50

8%

62

Carlton

3053

VIC

 $320,000.00

 $475.00

8%

63

Holloways Beach

4878

QLD

 $270,500.00

 $400.00

8%

64

Railway Estate

4810

QLD

 $237,500.00

 $350.00

8%

65

Renown Park

5008

SA

 $355,000.00

 $522.50

8%

66

Halls Head

6210

WA

 $350,000.00

 $515.00

8%

67

Kingaroy

4610

QLD

 $225,000.00

 $330.00

8%

68

Gracemere

4702

QLD

 $280,000.00

 $410.00

8%

69

Melbourne

3000

VIC

 $410,000.00

 $600.00

8%

70

the Gap

870

NT

 $260,000.00

 $380.00

8%

71

Kin Kora

4680

QLD

 $255,000.00

 $372.50

8%

72

Geraldton

6530

WA

 $185,000.00

 $270.00

8%

73

Kelmscott

6111

WA

 $310,000.00

 $450.00

8%

74

Parap

820

NT

 $380,000.00

 $550.00

8%

75

Chinchilla

4413

QLD

 $235,000.00

 $340.00

8%

76

Hamilton Hill

6163

WA

 $333,000.00

 $480.00

7%

77

Edmonton

4869

QLD

 $260,000.00

 $372.50

7%

78

Rosebery

832

NT

 $350,000.00

 $500.00

7%

79

Cairns North

4870

QLD

 $315,000.00

 $450.00

7%

80

Mackay

4740

QLD

 $280,000.00

 $400.00

7%

81

Garbutt

4814

QLD

 $231,000.00

 $330.00

7%

82

Forrestfield

6058

WA

 $350,000.00

 $500.00

7%

83

West End

4810

QLD

 $235,000.00

 $335.00

7%

84

Brinkin

810

NT

 $330,000.00

 $470.00

7%

85

Manoora

4870

QLD

 $253,000.00

 $360.00

7%

86

Wellard

6170

WA

 $325,250.00

 $462.50

7%

87

Mahomets Flats

6530

WA

 $247,500.00

 $350.00

7%

88

Langford

6147

WA

 $319,000.00

 $450.00

7%

89

Wembley

6014

WA

 $305,000.00

 $430.00

7%

90

Cannington

6107

WA

 $355,000.00

 $500.00

7%

91

South Mackay

4740

QLD

 $270,000.00

 $380.00

7%

92

Harristown

4350

QLD

 $256,000.00

 $360.00

7%

93

East Perth

6004

WA

 $427,000.00

 $600.00

7%

94

Osborne Park

6017

WA

 $321,000.00

 $450.00

7%

95

Travancore

3032

VIC

 $339,500.00

 $475.00

7%

96

Glen Eden

4680

QLD

 $272,000.00

 $380.00

7%

97

Perth

6000

WA

 $430,000.00

 $600.00

7%

98

The Gardens

820

NT

 $395,000.00

 $550.00

7%

99

Kewarra Beach

4879

QLD

 $360,000.00

 $500.00

7%

100

Thornlie

6108

WA

 $310,000.00

 $430.00

7%

Source: Your Investment Property Magazine, data from November 2023

Image by Jorge Láscar on Flickr





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