Investment Property Guides
Property investment loan basics.
Investment loans differ from owner-occupier loans in pricing, structure and what lenders assess. These guides cover the fundamentals before you compare specific loan products.
How investment loans differ
Investment loans are typically priced slightly higher than owner-occupier loans and lenders assess them differently, factoring in rental income alongside your other income and expenses.
Interest-only for investors
Some investors choose interest-only periods to manage cash flow, since rental income and tax considerations can make this appealing. It is worth understanding that this does not reduce the loan balance during the interest-only period.
Using equity to expand a portfolio
Equity is the difference between your property's value and what you owe. Some investors use equity in an existing property as security or a deposit for an additional purchase, though this increases overall debt and risk.
Rental income and serviceability
Lenders generally count a portion of expected or actual rental income toward your borrowing capacity, though the exact treatment varies by lender and loan type.
Loan structuring considerations
How you structure an investment loan, including whether to cross-collateralise with other properties, can affect flexibility later. It is worth understanding the trade-offs before settling on a structure.
This information is general in nature and does not take into account your personal circumstances. It is not financial advice or credit advice. Consider seeking professional advice before making a decision.