Investment home loan rates

Investment loan guides and resources

How we calculate Home Loan Finder Scores

Read full methodology

What different scores mean

9+

Excellent

These investment home loans offer low costs, coupled with a host of features, giving the best overall value.

7+

Great

These home loans may have slightly higher interest rates or fewer features but overall, a competitive offering.

5+

Standard

Usually the home loans would offer above average rates. They may still include some competitive features.

0+

Basic

Higher costs and/or fewer features.

What is Finder Score?

The Finder Score crunches 7,000 home loans across 120+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.

To provide a Score, we compare like-for-like loans. So if you're comparing the best home loans for cashback, you can see how each home loan stacks up against other home loans with the same borrower type, rate type and repayment type. We also take into consideration the amount of cashback offered when calculating the Score so you can tell if it's really worth it.

Read the full Finder Score breakdown

Why you can trust Finder's home loan experts

Easy answers, without any calls. We know fixing is a big deal, but checking you're options and rates shouldn't have to be. We speak to home owners every month, and have put over 50 hours in creating this guide.

Rates obsessed. We track big banks, small banks, credit unions and digital banks because whether you're fixing up for 1 year or 3, even 1 decimal place could save you big bucks (without getting annoying calls!).

Ready in any market .Lending rates verified from 180+ products day and night. Whether you're buying for the first time, or remembered refinacing at 3am - our rates are up-to-date.

Frequently asked questions

• Can I borrow 100% of an investment property's value?

  No. Most borrowers have a 20% deposit, but you can get an investment loan with a 10% deposit. A few lenders offer investment loans with 5% deposits.

• Is it harder to get an investment loan?

  Every home loan is a risk for the lender. And investment properties represent a greater risk. An owner-occupier with no other mortgages is a pretty safe bet. But an investor is speculating on the market. They may have their own mortgage too. An investor needs to cover their own mortgage, find a tenant to pay rent and cover the investment loan repayments.

• What is the average investment loan interest rate?

  As of April 2025, the average variable rate investment loan in Finder's database is 8.13%.

• Which lender has lowest investment loan rate?

  As of March 2025 the lowest investment loan rate is 5.55%.

• How much can you borrow for an investment property?

  In Australia most borrowers, whether homeowners or investors, save a deposit of around 20%. Some lenders are reluctant to lend to an investor unless they have a 20% deposit, but it's definitely possible to buy an investment property with a 10% deposit. You could go lower, but there are fewer loan options if your deposit is 5%.

  When your deposit is under 20% you also need to pay LMI. This can cost you thousands or even tens of thousands, so be sure to factor that in when looking to buy an investment property.

• What does an investment loan comparison rate mean?

  In Australia, all home loans come with 2 rates: the interest rate and the comparison rate. This includes investment loans. The comparison rate is a legal requirement that factors in the cost of fees in addition to interest. All comparison rates are calculated on a hypothetical home loan and don't provide specific details about your own potential costs. While a comparison rate is helpful, you're better off looking at the loan fees in detail for yourself.

• How many investment loans can you have at once?

  There's no limit on how many investment properties you can buy or how many loans you can take out. But you do need to be in a strong financial position to get multiple loans to buy multiple investments.

  If you tried to buy a string of investment properties with 5% deposits, lenders would likely knock you back and your credit score would drop. But if you bought one, paid off a good chunk of it and had steady rental income, you could be in a position to finance a second investment – especially if the value of the first one has risen.

  It's a really good idea to talk to a broker if you're trying to finance multiple properties.

• Should I use an offset account or redraw facility on my investment loan

  Offset accounts and redraw facilities work in a similar way but are structured very differently.

  An offset account is a bank account attached to your investment loan. Any money you've saved there offsets your loan principal (reducing your overall loan term and interest charges). It's your money and you can withdraw at any time.

  A redraw facility lets you withdraw extra repayments you've made on your investment loan. This can be handy in an emergency. Extra repayments also shorten your loan term and reduce your interest charges.

  An offset account gives you more control over your money. But not every investment loan has one.

  If you are planning to convert your current home into an investment property then an offset account offers more tax benefits. It's complicated, but basically if you make extra repayments on your original home loan, this reduces your loan size when it becomes an investment loan. This lowers your tax deductible costs.

• What is positive gearing?

  Positive gearing is the flip side to negative gearing. If you're positively geared, it means the income from your investment property (rent) is greater than the cost of holding it. In other words, you're earning more in rent than you're spending on your investment loan plus maintenance, council rates, insurance and so on. You're making a profit on your investment.

• How often should I review my investment home loan?

  It's worth reviewing your loan's interest rate at least annually. But you should take note of any time your interest rate goes up, as this increases your investing costs.