Investment Loan? Discover Approval Secrets (2026)

Investing in property can be a powerful way to build wealth and secure your financial future. But, like many Australians, you may find yourself asking, "Can I get an investment loan?" Whether you're a seasoned investor or just starting, understanding how to finance your property investments is crucial. The good news is, with the right knowledge and support, securing an investment loan is well within reach.

Understanding Investment Loans

Investment loans are specifically designed for purchasing properties that you intend to rent out or sell for a profit. Unlike owner-occupied loans, investment loans often come with different interest rates, lending criteria, and tax implications. Knowing these differences can help you make an informed decision and maximise your investment returns.

In 2026, the Australian property market continues to be dynamic, with investment properties remaining a popular choice for building wealth. With interest rates currently ranging from 6.49% to 12%, it's essential to shop around and find the best deal that suits your financial situation.

Key Information on Investment Loans

Before diving into the investment property market, it's important to understand the key aspects of investment loans, including rates, requirements, and options available to you.

The interest rate you receive will depend on several factors, including your credit score, the LVR, and the specific product offered by the lender. Esteb and Co, with access to 83+ lenders, can help you navigate these options and find a loan that aligns with your investment goals.

Steps to Secure an Investment Loan

Securing an investment loan involves several key steps:

1. Assess Your Finances: Evaluate your current financial situation, including income, expenses, and existing debts. A solid understanding of your financial health is crucial.
2. Research the Market: Stay informed about the current property market trends and potential investment opportunities.
3. Get Pre-Approval: A mortgage broker like Esteb and Co can assist you in obtaining pre-approval, giving you a clear idea of how much you can borrow.
4. Choose the Right Property: Consider properties that align with your investment strategy, whether it's long-term rental, short-term rental, or renovation for resale.
5. Submit Your Application: Work with your mortgage broker to compile the necessary documentation and submit your loan application.
6. Finalise Your Loan: Once approved, review the loan terms and conditions before finalising the purchase.

Tips and Considerations

Here are some expert tips to consider when applying for an investment loan:

• Understand Tax Implications: Investment properties come with tax benefits, such as negative gearing and depreciation. Consult a tax advisor to understand how these can work for you.
• Plan for Interest Rate Fluctuations: Interest rates can change, affecting your repayment amounts. Ensure you can manage your repayments even if rates increase.
• Keep an Emergency Fund: Unexpected expenses can arise. Having a financial buffer will help you manage any unforeseen costs without stress.
• Review Your Loan Periodically: Regularly review your loan to ensure it still meets your needs. Refinancing may offer better terms as your equity grows.
• Work with Professionals: A mortgage broker can provide invaluable advice and access to a wide range of lenders, increasing your chances of securing a favourable loan.

Frequently Asked Questions

1. What is the typical deposit required for an investment loan?
   Most lenders require a deposit of at least 20%, but some may offer loans with a lower deposit depending on their criteria.
2. Can I use equity from my current home to invest in property?
   Yes, using equity from your existing property is a common way to fund a deposit for an investment property.
3. Are interest rates higher for investment loans?
   Typically, yes. Investment loans often have higher interest rates compared to owner-occupied loans due to the increased risk for lenders.
4. What documents do I need to apply for an investment loan?
   You will need proof of income, identification, details of current assets and liabilities, and information about the property you plan to purchase.
5. How does rental income affect my borrowing capacity?
   Rental income can increase your borrowing capacity by providing additional income, but lenders may only consider a portion of it.
6. Can I fix the interest rate on my investment loan?
   Yes, many lenders offer fixed-rate investment loans, which can provide certainty in your repayments for a set period.
7. How does negative gearing work?
   Negative gearing allows you to deduct certain losses on your investment property from your taxable income, potentially reducing your tax bill.