Investor loans, built for the long game.
A good investor loan looks boring on paper, and that's the point. It keeps full deductibility, holds no surprises and gives you a structure you won't need to untangle three years from now.
Our investor loan checklist
Before we recommend a lender, an investor loan should meet every point on this list:
- Uncrossed from other properties unless there's a specific reason to cross
- Interest-only during the early years if cashflow and tax position support it
- Offset account on the relevant split (usually the owner-occupier, not the investment)
- A clean split between investment and personal funds, so no interest is contaminated
- Ownership entity decided deliberately, in coordination with your accountant
- A lender chosen for policy fit and its serviceability calculator, rather than headline rate alone
Investor home loan FAQs
Can I claim the interest on the loan?
Interest on money borrowed to acquire an income-producing asset is generally deductible. Deductibility depends on the purpose of the borrowing rather than the security. Keep the loan clean by not mixing investment borrowing with personal use, and deductibility is usually straightforward. Always confirm with your accountant.
Is the investment property rate higher than owner-occupied?
Usually, yes. Lenders price investor loans slightly higher than owner-occupier loans because the risk profile is different. The gap has narrowed considerably over the last few years.
What LVR can I borrow to?
Typically 80% without LMI, and 90 to 95% with LMI on investor loans. The higher the LVR, the tighter the lender's terms and the more expensive the LMI. It's usually not worth it unless cashflow requires it.
Related pages
General advice disclaimer. The information on this page is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider whether it is appropriate for you before acting on it, and seek professional advice where relevant.
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