Investment Loans From 5.68% — across 105 lenders
Every lender treats investor borrowing power differently. Some assess at 5% buffer, others at 3%. The wrong lender could cost you $170k+ in borrowing capacity. Avg investor loan in 2026: $668k. Investment rates start at 5.68%. We compare 105 lenders to find your match.
Important Information
Esteb and Co provides credit assistance services. We are licensed credit representatives (ASIC Credit Rep #574070) who help you compare loan options from our panel of lenders. We do not lend money directly. All loan approvals are made by lenders, subject to their criteria and responsible lending assessments. Our service is free to you - we receive commissions from lenders. Read our Credit Guide
"My bank would only lend me $550K for an investment property. Esteb and Co found a lender that approved $720K using a different income assessment. Same income, $170K more borrowing power."
"They structured my loan with interest-only for the first 5 years which maximised my cash flow and tax deductions. My accountant was impressed."
"Third investment property and I still use Esteb and Co. They know which lenders are best for portfolio investors."
The Australian Investment Property Market
Real numbers from ABS Lending Indicators and CoreLogic rental data
Gross Rental Yields by Capital City — Houses vs Units
CoreLogic data, March 2026 — Houses (dark) vs Units (light)
Source: CoreLogic Daily Home Value Index, March 2026 quarter. Gross yields before expenses.
Investor Lending Share (5 years)
% of new home loans going to investors
Source: ABS Lending Indicators 5601.0
Lender Max LVR (Investment)
How many of our 105 lenders accept each LVR tier
Lender count by max LVR for investment loans
Yield matters more than capital growth in 2026
With rates at 5.68%+ and yields in Sydney/Melbourne houses sitting at 2.7%-2.9%, negative gearing becomes the default. But Brisbane, Perth, and Adelaide offer positive geared opportunities with house yields above 3.6% and unit yields above 5%. Your lender selection determines your borrowing power — and the wrong one can cost you $170k.
Check Your Borrowing Power →Why Choose Investment Property Loans?
Investment property loans help you build wealth through real estate. With the right loan structure and tax strategy, you can create passive income and long-term capital growth.
Capital Growth
Build equity as property values increase over time. Historical data shows Australian property doubles every 7-10 years on average.
Rental Income
Generate passive income from tenants. Rental yields of 3-6% are common across Australian capital cities and regional areas.
Tax Benefits
Claim deductions on interest, property management, repairs, and depreciation. Negative gearing can reduce your taxable income.
Leverage & Equity
Use equity from existing properties to build your portfolio. Leverage allows you to control $500K+ assets with 20% deposit.
Portfolio Diversification
Diversify beyond shares and super. Property provides tangible assets with lower volatility than equities.
Retirement Planning
Build a self-funded retirement through property. Sell or retain for ongoing passive income in retirement years.
How Much Can You Borrow for Investment?
Investment loan serviceability is calculated differently to owner-occupied loans. Lenders typically assess rental income at 80% and apply higher interest rate buffers.
First Investment Property
Single income, no existing debts
- ✓Total property value: $600K
- ✓LVR: 80%
- ✓Estimated rental: $550/week
- ✓LMI: Nil (20% deposit)
Using Equity Growth
Dual income + equity from existing home
- ✓Total property value: $1M
- ✓LVR: 80%
- ✓Estimated rental: $850/week
- ✓Use equity as deposit
Experienced Investor
High income + multiple properties
- ✓Total property value: $1.75M
- ✓LVR: 80%
- ✓Portfolio approach strategy
- ✓Tax-effective structures
Note: Investment loan serviceability is calculated conservatively. Lenders assess rental income at 80% and may apply higher interest rate buffers (3%+). We'll help you find lenders with favorable investment policies.
Choose Your Investment Strategy
Different strategies suit different investors. We'll help you choose the right approach based on your goals, income level, and risk tolerance.
Capital Growth Strategy
Goal: Maximize property value appreciation over time. Lower rental yield but higher long-term capital gains.
✓ Best For:
- High income earners
- Long-term investors (10+ years)
- Those who can afford negative gearing
- Sydney/Melbourne investors
📊 Typical Numbers:
- Rental yield: 2.5-3.5%
- Capital growth: 6-8% p.a.
- Negative gearing common
- Blue-chip suburbs
Rental Yield Strategy
Goal: Maximize rental income to cover loan repayments. Positive cash flow from day one.
✓ Best For:
- Lower-middle income earners
- Retirees seeking income
- Risk-averse investors
- Regional area investors
📊 Typical Numbers:
- Rental yield: 5-7%
- Capital growth: 3-5% p.a.
- Positive/neutral gearing
- Regional high-demand areas
Renovation & Value-Add Strategy
Goal: Buy undervalued properties, renovate, and increase equity quickly through forced appreciation.
✓ Best For:
- Experienced investors
- Hands-on DIY capabilities
- Access to renovation capital
- Higher risk tolerance
📊 Typical Numbers:
- Renovation cost: $50K-$150K
- Value uplift: $100K-$300K
- Timeframe: 6-12 months
- Refinance to access equity
Portfolio Building Strategy
Goal: Acquire multiple properties systematically using equity recycling and strategic leverage.
✓ Best For:
- High income professionals
- Experienced investors
- Long-term wealth builders
- Strong financial discipline
📊 Typical Timeline:
- Year 1-2: First property
- Year 3-5: Use equity for 2nd
- Year 6-10: Properties 3-4
- Diversified portfolio mix
Investment Property Tax Benefits
Maximize your tax deductions and understand how negative gearing can work in your favor. These benefits can significantly improve your investment returns.
💳 Interest Deductions
100% of loan interest is tax deductible on investment properties. On a $500K loan at 6%, that's $30K/year in deductions.
🏗️ Depreciation
Claim wear and tear on building (2.5% p.a.) and fixtures/fittings. A quantity surveyor report unlocks these deductions.
🔧 Repairs & Maintenance
Immediate deductions for repairs, maintenance, pest control, gardening, and general upkeep costs.
👔 Property Management
Management fees (typically 7-9% of rent), advertising for tenants, lease preparation all fully deductible.
💰 Council & Water Rates
Council rates, water rates, strata fees, and other property-related charges are fully deductible.
🏦 Insurance Premiums
Landlord insurance, building insurance, and contents insurance premiums are all tax deductible.
Understanding Negative Gearing
What Is Negative Gearing?
When your property expenses (loan interest, maintenance, etc.) exceed your rental income, creating a tax-deductible loss that reduces your overall taxable income.
Example Calculation
This $9,400 loss reduces your taxable income, saving you ~$3,700+ in tax (at 39% marginal rate)
Key Point: While you're making a paper loss each year, you're building equity through capital growth and debt reduction. The tax benefits reduce your out-of-pocket costs, making it affordable to hold quality assets that appreciate over time.
Interest-Only vs Principal & Interest
Choosing the right loan structure can significantly impact your cash flow and long-term returns.
Interest-Only Loans
Popular with investors seeking maximum cash flow
✓ Advantages:
- Lower repayments: Pay only interest, not principal
- Better cash flow: More funds for other investments
- Higher tax deductions: More interest = more deductions
- Flexibility: Can make principal payments when you choose
- Leverage: Maintain maximum debt for tax benefits
⚠ Considerations:
- No principal reduction during IO period
- Higher repayments after IO period ends
- Typically limited to 5 years (can extend)
- May have slightly higher interest rates
Example: $500K Loan @ 6.0%
Principal & Interest Loans
Build equity faster with traditional repayments
✓ Advantages:
- Build equity: Reduce loan balance over time
- Lower rates: Typically 0.1-0.3% cheaper than IO
- Security: Pay down debt = more buffer in downturns
- Forced savings: Principal reduction builds wealth
- Refinancing: Better LVR for future borrowing
⚠ Considerations:
- Higher monthly repayments
- Less cash flow for other investments
- Lower tax deductions over time (less interest)
- Less leverage for portfolio growth
Example: $500K Loan @ 5.89%
💡 Our Recommendation
Many successful investors use interest-only during the growth phase to maximize cash flow and tax benefits, then switch to principal & interest when approaching retirement or when building equity becomes the priority. We'll help you choose the right strategy for your stage and goals.
Investment Property Borrowing Power
Estimate how much you could borrow for your next investment property.
Investment Property FAQs
How much deposit do I need for an investment property?
Most lenders require a minimum 20% deposit to avoid Lenders Mortgage Insurance (LMI). However, some lenders will accept 10% deposit with LMI. If you have equity in your existing home, you can use this instead of cash savings. High-income earners in certain professions may access special low-deposit programs.
Can I buy an investment property before buying my first home?
Yes, absolutely. Many investors start with investment properties to build wealth before purchasing their own home. The advantage is you can claim all tax deductions. The disadvantage is you won't have access to first home buyer grants or stamp duty concessions. We'll help you compare both strategies based on your situation.
What's the difference between investment and owner-occupied loan rates?
Investment loan rates are typically 0.25-0.50% higher than owner-occupied rates. This is because lenders view investment properties as higher risk—if you face financial difficulty, you're more likely to default on an investment loan than your primary residence. However, the tax deductibility of investment loan interest more than offsets this rate difference for most investors.
How do lenders assess rental income?
Most lenders assess rental income at 80% to account for vacancies and management costs. So if your property rents for $600/week ($31,200/year), lenders will only count $24,960 toward your serviceability. Some specialist lenders may assess at 100% for high-demand properties or experienced investors with strong rental history.
Can I use equity to buy an investment property?
Yes, this is one of the most common strategies for building a property portfolio. If your home has increased in value, you can access up to 80% of the equity without selling. For example, if your home is worth $800K with a $400K loan, you have $240K in usable equity ($640K x 80% - $400K loan). We can help you calculate your available equity and structure the loans correctly.
What's better: capital growth or high rental yield?
It depends on your strategy. High-income earners typically prefer capital growth properties (Sydney/Melbourne blue-chip suburbs) because they can afford negative gearing and benefit from long-term appreciation. Lower-income investors or retirees often prefer high-yield properties (regional areas) for positive cash flow. Many successful investors have a mix of both. We'll help you build a balanced portfolio based on your income, goals, and risk tolerance.
How many investment properties can I own?
There's no legal limit, but your borrowing capacity depends on your income, existing debts, and total portfolio value. Most mainstream lenders become conservative after 4-6 properties. However, specialist lenders cater to experienced investors with 10+ properties. Your serviceability is the key constraint—we'll help you maximize your borrowing capacity through the right lender selection and loan structuring.
Should I set up a trust or company for investment properties?
This depends on your situation. Personal names are simplest and offer full negative gearing benefits. Trusts provide asset protection and income distribution flexibility but have setup costs and complexity. Companies have limited negative gearing benefits. For most first-time investors, personal names or joint names work best. For larger portfolios, trusts may make sense. We recommend consulting with an accountant or tax advisor for structure advice, and we'll help you find lenders who work with your chosen structure.
How We Help Investment Property Buyers
We compare 105 lenders to find you the best investment loan with favorable LVR, serviceability policies, and interest rates.
Lender Comparison
We compare 105 lenders including major banks and specialist lenders who understand investors. Find the best rates and policies for your strategy.
Tax Strategy Advice
Understand depreciation, negative gearing, and loan structure to maximize your tax benefits. We'll connect you with tax specialists if needed.
Serviceability Optimization
We know which lenders assess rental income favorably and have lower living expense benchmarks, maximizing your borrowing capacity.
Portfolio Strategy
Building multiple investment properties? We'll help you structure loans correctly and choose lenders who support portfolio growth.
Interest-Only Specialists
Not all lenders offer interest-only to investors anymore. We know which ones do and can secure 5+ year IO periods for qualified investors.
Fast Pre-Approval
Get pre-approved before you make an offer. Know your exact borrowing capacity and act quickly when you find the right investment.
Ready to Build Your Property Portfolio?
Compare 105 investment property lenders and find the best rates, LVR options, and serviceability policies for investors. Start your no-cost assessment now.
