Our database lists 194 products available from 8 lenders. Investment home mortgage rates start from 5.85% and 10.06% with varying fees and LVR percentages.
Revisit this page weekly or bookmark it to stay updated on the best investment home mortgage rates available in Australia. The table below shows the rates as of [date] and may change at any time.
Investment home mortgage rates
| COMPANY | TYPE | TERM | INITIAL RATE | THE OVERALL COST FOR COMPARISON IS | PRODUCT FEE | LOAN TO VALUE (LTV) |
|---|---|---|---|---|---|---|
| UBANK | 2 year Offset Tracker at BEBR + 1.22% for 2 years Residential Purchase Offset | 2 years | 5.97% | 6.9 APRC | £1749.00 | 75% |
| UBANK | 5 year Offset Tracker at BEBR + 1.25% for 5 years Residential Purchase Offset | 5 years | 6.00% | 6.7 APRC | £1749.00 | 75% |
| UBANK | 2 year Tracker at BEBR + 0.15% for 2 years Rate | 2 years | 4.96% | 6.7 APRC | £999.00 | 60% |
| UBANK | 2 year Tracker at BEBR + 0.36% for 2 years Rate | 2 years | 5.11% | 6.7 APRC | £999.00 | 75% |
| UBANK | 2 year Tracker at BEBR + 0.76% for 2 years Rate | 2 years | 5.51% | 6.8 APRC | £999.00 | 85% |
| UBANK | 2 year Tracker at BEBR + 1.10% for 2 years Rate | 2 years | 5.85% | 6.8 APRC | £999.00 | 90% |
| UBANK | 2 year Tracker at BEBR + 0.50% for 2 years Premium Exclusive Rate | 2 years | 5.25% | 6.7 APRC | £0.00 | 75% |
| UBANK | 2 year Tracker at BEBR + 0.35% for 2 years Rate | 2 years | 5.10% | 6.6 APRC | £1999.00 | 60% |
| UBANK | 2 year Tracker at BEBR + 0.55% for 2 years Rate | 2 years | 5.30% | 6.7 APRC | £1999.00 | 70% |
| UBANK | 2 year Tracker at BEBR + 0.57% for 2 years Rate | 2 years | 5.32% | 6.7 APRC | £1999.00 | 75% |
| UBANK | 5 year Tracker at BEBR + 0.60% for 5 years Rate | 5 years | 5.35% | 6.4 APRC | £999.00 | 60% |
| UBANK | 5 year Tracker at BEBR + 1.00% for 5 years Rate | 5 years | 5.75% | 6.6 APRC | £999.00 | 85% |
| UBANK | Residential Remortgage Offset Tracker at BEBR + 1.22% | 2 years | 5.97% | 6.9 APRC | £1749.00 | 75% |
| UBANK | Residential Remortgage Offset Tracker at BEBR + 1.25% | 5 years | 6.00% | 6.7 APRC | £1749.00 | 75% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.15% | 2 years | 4.96% | 6.7 APRC | £999.00 | 60% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.36% | 2 years | 5.11% | 6.7 APRC | £999.00 | 75% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.76% | 2 years | 5.51% | 6.8 APRC | £999.00 | 85% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.50% Premium Exclusive | 2 years | 5.25% | 6.7 APRC | £0.00 | 75% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.35% | 2 years | 5.10% | 6.6 APRC | £1999.00 | 60% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.55% | 2 years | 5.30% | 6.7 APRC | £1999.00 | 70% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.57% | 2 years | 5.32% | 6.7 APRC | £1999.00 | 75% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.60% | 5 years | 5.35% | 6.4 APRC | £999.00 | 60% |
| UBANK | Residential Remortgage Tracker at BEBR + 1.00% | 5 years | 5.75% | 6.6 APRC | £999.00 | 85% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 4.89% | 6.6 APRC | £999.00 | 60% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.24% | 6.6 APRC | £0.00 | 60% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.11% | 6.7 APRC | £999.00 | 75% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.25% | 6.6 APRC | £0.00 | 75% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.61% | 6.7 APRC | £99.00 | 80% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.21% | 6.7 APRC | £999.00 | 90% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.95% | 6.8 APRC | £0.00 | 90% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 5 years | 5.35% | 6.3 APRC | £999.00 | 60% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 5 years | 5.75% | 6.5 APRC | £999.00 | 85% |
| UBANK | Existing Residential Mortgage Customers Reward Offset Tracker | 2 years | 5.97% | 6.9 APRC | £1749.00 | 80% |
| UBANK | Existing Residential Mortgage Customers Reward Offset Tracker | 5 years | 6.00% | 6.7 APRC | £1749.00 | 80% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.10% | 6.6 APRC | £1999.00 | 70% |
| UBANK | Existing Residential Mortgage Customers Reward Offset Tracker | 2 years | 6.65% | 7.0 APRC | £1999.00 | 70% |
| UBANK | Existing Mortgage Customers Reward Buy-to-Let Tracker | 2 years | 5.69% | 8.8 APRC | £1795.00 | 65% |
| UBANK | Existing Mortgage Customers Reward Buy-to-Let Tracker | 2 years | 5.77% | 8.9 APRC | £1795.00 | 75% |
| UBANK | Existing Mortgage Customers Reward Buy-to-Let Tracker | 2 years | 6.30% | 8.9 APRC | £0.00 | 75% |
| UBANK | Existing Mortgage Customers Reward Buy-to-Let Tracker | 2 years | 5.90% | 8.8 APRC | £1795.00 | 60% |
Investment home mortgage rates FAQs
How much will the bank lend me for an investment property?
Banks usually lend up to 80% of the investment property's value. This is known as the loan-to-value ratio (LVR). The actual amount can vary depending on:
- your financial situation
- the lender's policies
- the property's location and condition
Lenders assess your borrowing capacity based on:
- your income and expenses
- credit history
- existing debts
- property value
Some lenders might offer a higher LVR, but none will provide full financing. They want to ensure that, even if the market drops, the loan amounts might result in a value that does not exceed the property’s worth.
What is an investment loan in Australia?
An investment loan is used to purchase property as an investment. Investors often use rental income to fund the loan repayments. Investment home mortgage rates are like home loans but are usually higher due to increased risk for lenders.
Principal-interest and interest-only investment loans comparison
Principal and interest home loans:
- repayments cover both principal and interest: this reduces the loan balance and increases equity over time
- higher repayments: compared to interest-only loans, repayments are higher but build equity
Interest-only investment home loans:
- repayments cover only interest: lower repayments initially, but the loan balance remains unchanged
- higher interest costs: over time, interest costs are higher, but they may be tax-deductible
- cash flow benefits: more cash available for other investments initially, but risky if property values don’t rise
Investment home mortgage rates are important for investors to understand. The type of loan and repayment plan significantly impacts cash flow and investment strategy. Knowing these details helps make informed financial decisions when buying an investment property.
Are investment home loans more expensive?
Yes, investment home loans are generally more expensive than owner-occupied loans because they are considered riskier by lenders. Below are some of the factors contributing to this higher cost:
Factors influencing higher interest rates
Investment home mortgage rates tend to be higher because lenders consider them less secure:
- risk factor: lenders see investment properties as riskier as investors might abandon properties more easily during financial downturns
- income dependency: rental income can be unstable
- income stability: full-time investors often face unpredictable incomes
- liquid assets: investors need solid cash reserves
Additional costs
Investment loans come with higher costs beyond just the interest rate:
- higher down payments: investment loans often require larger down payments
- loan-to-value ratio (LVR): lower maximum LVR for investment loans
- closing costs: appraisal and other fees can be higher
Renting out an investment property can lead to vacancy periods, increasing the chance of missing mortgage payments. If financially strained, you might prioritise your primary mortgage and neglect the investment property mortgage. Learning everything about investment home mortgage rates can empower you in making sound financial decisions.
What are the steps to take before investing in property?
Investing in property requires careful planning. Follow these steps to ensure a sound investment:
- assess your financial situation: calculate expenses against income and assets to determine if you can handle investment home mortgage rates
- secure pre-approval: get a formal borrowing limit from a lender or mortgage broker. Avoid multiple pre-approvals to prevent credit issues
- set clear investment goals: define success, set deadlines, check the best investment home loan rates Australia has to offer, and break down long-term goals
- create an investment plan: consult a financial planner, research high-growth markets, and learn from real estate investing courses. Choose properties with strong rental demand and engage a conveyancer or solicitor early
- finalise financing and preparations: secure full finance approval, arrange necessary insurance, and complete settlement with legal help
What kind of loan do I need for an investment property?
Along with the preparations, you should learn about the various loan options available for investment home mortgage rates:
- conventional bank loans: standard loans from banks
- home equity loans: using your home equity as collateral
- private money loans: loans from private investors
- hard money loans: short-term loans based on property value
Pros and cons of investment properties
Benefits of investment properties:
- security and stability: properties are generally in demand
- cash flow: potential for steady rental income
- tax benefits: possible tax deductions on expenses
- long-term investment: property values and rental income usually increase over time
Disadvantages of investment properties:
- liquidity issues: harder to access cash compared to stocks
- entry costs: high initial costs, including down payments
- ongoing costs: maintenance, mortgage, and insurance expenses
- difficult tenants: potential for tenant-related problems and financial losses
Can I change my home loan to an investment loan?
Yes, you can convert them by notifying your lender, potentially refinancing, and identifying the tax implications. Below are essential information and steps in the process of switching from a home loan to an investment loan:
What is the difference between a loan and an investment?
Home loans, or owner-occupier home loans, are for a property you live in, while an investment loan is for a property you plan to rent out or sell. Most features are similar between the two, but investment home mortgage rates are higher due to increased risk. A significant difference is that interest on investment loans is fully tax deductible, which can offset rental income.
Steps to change your home loan to an investment property loan
- review your mortgage terms: check the fine print of your existing mortgage. Some loans have restrictions or penalties for converting to an investment loan
- inform your lender: notify your lender of your intent to convert your home to an investment property. This may involve refinancing to an investment loan with different terms, fees, and interest rates
- know tax implications: converting your home affects your tax situation. Be aware of capital gains tax and negative or positive gearing, then consult a tax accountant for detailed advice
- set investment goals and budget: establish clear investment goals and budget effectively. Do investment home loan rates comparison
- evaluate rental options: decide whether to rent out the entire home or just a part of it. Understand how this affects your tax and loan structures
Changing your home loan to an investment loan requires careful planning and consultation with financial professionals. Understanding investment home mortgage rates and the related tax implications will help you make informed decisions.
