Investment Loan Rates in Australia: How to Find the Best Deal

This article first appeared on awesomelendingsolutions.com.au.

Investment loan rates directly affect your cash flow and returns. Even a small difference can add up to thousands of dollars a year. But the "best" investment loan isn't just the one with the lowest rate. This guide explains how investment rates work and how to compare them properly.

Why are investment rates higher?

Lenders usually charge investors a little more than owner-occupiers. This is because:

• Investors are seen as slightly more likely to default in tough times
• Regulators expect banks to hold more capital against investor loans
• Investment loans are often interest-only, which carries more risk

The gap between owner-occupied and investor rates changes over time, so it's worth checking the current market.

What affects your rate?

Your rate depends on:

• Repayment type – interest-only rates are usually higher than principal and interest
• Loan to Value Ratio (LVR) – lower LVRs usually get better rates
• Loan size – larger loans may get bigger discounts
• Rate type – variable, fixed or split
• Your profile – income, credit history and portfolio size
• The lender – each has its own pricing and appetite for investors

Rates in 2026

The Reserve Bank raised the cash rate four times in 2026, to 4.60% at the end of September. Most lenders passed these rises on to variable rates. If you haven't reviewed your investment loan this year, you may be paying more than you need to.

How to compare investment loans

1. Compare the comparison rate

This includes most fees and gives a better picture of the real cost.

2. Check the interest-only terms

If you want interest-only, ask:

• How long can I have interest-only?
• What's the rate difference?
• What happens when it ends?

3. Look at features

• Offset account – useful, but for investment loans, an offset on your home loan is often more valuable
• Split loans – useful for different purposes
• Free extra repayments

4. Check lender policies

This is often more important than the rate for investors. Ask:

• How much rental income will you count?
• How do you treat negative gearing in serviceability?
• Do you accept my property type and location?
• How do you assess existing investment loans with other lenders?

Since February 2026, banks are limited in how much lending they can do where total debt is six or more times income. If you have several properties, some lenders may have more capacity than others.

5. Watch the fees

Annual package fees are common. On larger loans, a package can be worth it for the rate discount. On smaller loans, it may not be.

An example

Two investment loans on $600,000:

Loan A: 6.49% interest-only, $395 annual fee

Loan B: 6.69% interest-only, no annual fee

Interest cost per year:

• Loan A: about $38,940 plus $395 = $39,335
• Loan B: about $40,140

Loan A is around $800 cheaper each year, even with the annual fee.

Tax and your rate

Interest on investment loans is usually tax deductible. But the 2026 tax changes mean that for established residential properties bought after 7:30pm on 12 May 2026, losses can only be used against rental income or capital gains from 1 July 2027, not against your wages. This changes the after-tax cost of interest for some investors. A lower rate helps no matter which rules apply to you.

Ways to get a better rate

• Ask your current lender for a rate review
• Reduce your LVR below key thresholds (like 70% or 60%)
• Switch from interest-only to principal and interest if it suits your plan
• Use a broker to compare a wide range of lenders

Fixed or variable for investors?

Fixed rates give certainty for budgeting, which some investors value when rates are rising. Variable rates give flexibility to sell, refinance or pay down without break costs. Many investors split their loans.

Frequently asked questions

Is the lowest investment rate always best?

No. Lender policy and features can matter more, especially if you plan to keep buying.

Can I get owner-occupied rates on an investment?

No. If you rent out the property, it must be on an investment loan.

How often should investors review their rates?

At least once a year, and whenever the cash rate changes.

Do all lenders charge the same investor premium?

No. Some lenders price investors much more competitively than others, which is why comparing a wide range matters.

Will a lower rate improve my borrowing power?

Slightly, yes. Lenders assess your repayments at your rate plus 3%, so a lower rate can help a little with serviceability for future purchases.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

Home Loan Refinancing Options in Australia: Which One Suits You?

This article first appeared on awesomelendingsolutions.com.au.

Refinancing isn't one single thing. There are several ways to refinance, and each one suits a different goal. Before you start, it helps to know what you want to achieve. Then you can choose the option that fits.

Option 1: Ask your current lender for a better rate

This is the simplest option. You stay with your lender but ask for a lower rate. Many lenders offer better rates to new customers than to existing ones. If you ask, especially with a competing offer, they may lower your rate.

Best for: people who are happy with their lender and want a quick saving with no paperwork.

Pros: fast, no new application, no fees.

Cons: your lender may only offer a small discount.

Option 2: Switch to a new lender

You move your loan to a new lender with a lower rate or better features.

Best for: people who want the best possible rate or features their current lender doesn't offer.

Pros: potentially larger savings, access to better products.

Cons: new application, valuation and some fees.

Option 3: Switch products with your lender

Some lenders let you change to a different product, such as a loan with an offset account, without a full refinance.

Best for: people who need different features but like their lender.

Option 4: Cash out refinance

You refinance for a higher amount and take out some of your equity as cash, for things like renovations or investing.

Best for: people with good equity and a clear purpose for the funds.

Pros: access to cash at a home loan rate.

Cons: bigger loan, more interest. Lenders will want to know how you'll use the money.

Option 5: Debt consolidation

You roll higher-interest debts, like credit cards or personal loans, into your home loan.

Best for: people struggling with multiple debts who want one lower repayment.

Pros: lower interest rate, simpler budgeting.

Cons: short-term debts become long-term debts. If you don't repay them faster, you may pay more interest overall.

Option 6: Change your rate type

You can refinance to change between:

• Variable – flexible, often with an offset account
• Fixed – certainty for one to five years
• Split – part fixed, part variable

With the cash rate at 4.60% after four rises in 2026, some borrowers are looking at fixed rates for peace of mind. Others prefer to stay variable in case rates fall later. A split loan can give you a bit of both.

Option 7: Restructure your loans

Refinancing can also be a chance to fix a poor loan structure. For example:

• Separating investment and home loan debt for tax reasons
• Splitting a loan to use an offset account effectively
• Removing a former partner from a loan after a separation
• Releasing a guarantor

Option 8: Refinance an investment loan

Investors can refinance to lower rates, switch between interest-only and principal and interest, or release equity for the next purchase. Investors should also think about recent tax changes, such as the 2026 negative gearing rules, before restructuring.

How to choose the right option

Ask yourself:

1. What is my main goal? Lower repayments, cash, features or certainty?
2. How much equity do I have? Ideally your loan is 80% or less of the property value.
3. How long will I keep the loan? This affects whether fees and costs are worth it.
4. Am I on a fixed rate? If so, check break costs.
5. Has my financial situation changed? This affects what lenders will approve.

Refinancing in NSW

In NSW, refinancing involves registering a new mortgage and discharging the old one through the land registry. Your new lender usually handles this through electronic settlement. Government fees apply, but they are usually a small part of the overall cost.

An example

Jess has a $480,000 loan at 6.89% with her original lender. She also has a $12,000 credit card at 19.99%.

• She refinances to a new lender at 6.19%.
• She adds the credit card to her home loan.
• Her total monthly repayments drop significantly.

Jess commits to paying an extra $350 a month so the credit card debt is still cleared within three years.

Frequently asked questions

Which refinancing option saves the most?

It depends on your situation. Switching lenders often gives the biggest rate cut, but asking your lender first is quick and easy.

Can I do more than one option at once?

Yes. Many people switch lenders, change rate type and consolidate debt in one refinance.

Is now a good time to look at my options?

If you haven't reviewed your loan this year, yes. Four rate rises in 2026 mean many loans are no longer competitive.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

First Home Owner Grant 2026: How Much You Can Get and Who Qualifies

This article first appeared on awesomelendingsolutions.com.au.

The First Home Owner Grant (often called the FHOG) is one of the best-known forms of help for first home buyers. But it is also one of the most misunderstood. Many people think everyone buying their first home gets a grant. In fact, the grant is mainly for people buying or building a brand-new home.

Here is how the grant works in 2026, what it is worth in each state, and how it fits with other schemes.

What is the First Home Owner Grant?

The First Home Owner Grant is a one-off cash payment from your state or territory government. It is designed to encourage people to buy or build new homes, which adds to housing supply.

Each state runs its own grant, so the amount and rules depend on where you are buying, not where you live.

How much is the grant in each state?

As at 2026, the grant for new homes is roughly:

• NSW – $10,000
• Victoria – $10,000
• Western Australia – $10,000
• South Australia – $15,000
• Tasmania – $20,000
• Queensland – $30,000
• Northern Territory – up to $50,000
• ACT – no grant, but a separate stamp duty concession is available

Price caps and rules change, so always check your state revenue office website before you sign anything.

The NSW First Home Owner Grant

In NSW, the grant is $10,000. To be eligible, the property must be:

• A newly built home, off-the-plan purchase or substantially renovated home with a purchase price of $600,000 or less, or
• A home you build yourself (house and land) with a total value of $750,000 or less

The grant is not available for existing homes. If you buy an established apartment or house, you will not receive the FHOG in NSW. However, you may still save a lot through the stamp duty scheme (more on this below).

Who is eligible?

In general, you must:

• Be at least 18 years old
• Be an Australian citizen or permanent resident (at least one applicant)
• Never have owned residential property in Australia before
• Never have received a first home owner grant in any state
• Live in the home for at least 12 continuous months, usually starting within 12 months of settlement or completion

Your spouse or partner must also meet the "never owned" rule, even if they are not on the loan.

How to apply

There are two main ways to apply:

1. Through your lender – many approved lenders can lodge the application for you. The grant is then usually paid at settlement and can help with your deposit or costs.
2. Directly to Revenue NSW – you can apply online, usually after settlement or once your home is built.

If you are building, the grant is often paid at the first progress payment to your builder.

Other first home buyer help that may be worth more

For most NSW buyers, the grant is not the biggest saving. These schemes can be worth far more:

• First Home Buyers Assistance Scheme (NSW) – no stamp duty on new or existing homes up to $800,000, and reduced duty up to $1 million. On an $800,000 home, that is a saving of around $30,000.
• 5% Deposit Scheme (federal) – buy with a 5% deposit and no LMI. There are no income caps. The NSW price cap is $1.5 million in Sydney and regional centres and $800,000 elsewhere.
• Help to Buy (federal) – the government can take up to a 40% share of a new home or 30% of an existing one, with a 2% deposit. Income and price caps apply.
• First Home Super Saver Scheme – save part of your deposit inside super, with tax benefits.

In many cases, you can combine these. For example, a first home buyer in NSW buying a new $580,000 apartment could get the $10,000 grant, pay no stamp duty and use the 5% Deposit Scheme to avoid LMI.

Common mistakes to avoid

• Assuming you will get the grant on an existing home. In NSW, you will not.
• Going over the price cap by a small amount. Even $1 over can make you ineligible.
• Not checking your partner's history. If your partner owned property before, it can affect your eligibility.
• Moving out too early. If you do not meet the live-in rule, you may have to pay the grant back.

Frequently asked questions

Can I get the grant if I buy an existing home in NSW?

No. The NSW grant is only for new or substantially renovated homes. You may still get stamp duty relief, though.

Can I use the grant for my deposit?

If your lender lodges the application, the grant is usually paid at settlement and can count towards your costs. Some lenders count it towards the deposit; others do not. A broker can check this for you.

Do I have to pay the grant back?

Only if you do not meet the rules, such as living in the home for 12 months.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

When Should You Start the Home Loan Process?

This article first appeared on awesomelendingsolutions.com.au.

Many people wait until they've found a property before they think about their home loan. That's often too late. The best time to start the home loan process is much earlier than most people expect. Here's a timeline to help you get ready.

Why start early?

Starting early helps you:

• Know your real budget before you fall in love with a property
• Fix problems with your credit or finances
• Build a stronger deposit and savings history
• Find out which government schemes you qualify for
• Act quickly when you find the right home

12 months or more before buying

This is the ideal time to have your first chat with a broker. At this stage you can:

• Set a savings goal – based on your target price and scheme eligibility
• Check your credit report – and fix any errors
• Plan for genuine savings – many lenders want to see savings built over at least three months
• Consider the First Home Super Saver Scheme – it works best if you start contributing well before you buy
• Reduce debts – pay down credit cards and avoid new loans

6 to 12 months before buying

• Keep your job stable – lenders prefer at least a few months in your current role, and some require you to be past probation
• Track your spending – lenders look at your bank statements
• Cancel unused subscriptions and reduce discretionary spending
• Research suburbs – and check scheme price caps
• Talk about family help – if a guarantor or gift is part of your plan

3 to 6 months before buying

• Gather documents – payslips, bank statements, ID, debt statements
• Get pre-approval – ideally fully assessed
• Line up your team – conveyancer, building inspector, possibly a buyer's agent
• Attend open homes and auctions to get a feel for prices

When you find a property

• Tell your broker before you make an offer or bid
• Get the contract reviewed by your conveyancer
• Organise inspections
• Check the property suits your lender (some lenders have rules on small units or certain locations)

After exchange

• Formal approval – the lender values the property
• Sign loan documents
• Arrange insurance
• Prepare for settlement

Refinancing timeline

If you're refinancing, start:

• 2 to 3 months before your fixed rate ends
• Any time you notice your rate is higher than market rates
• At least once a year for a review

Starting early in 2026

2026 has shown how quickly things can change. The cash rate rose four times, lifting assessment rates and reducing borrowing power for many buyers. The 5% Deposit Scheme expanded, and APRA introduced a debt-to-income limit. Talking to a broker early means you can plan around these changes instead of being surprised by them.

An example

Lily wants to buy her first home in about a year. She speaks to a broker now.

• Her broker shows her she'll qualify for the 5% Deposit Scheme.
• She learns that her $8,000 credit card limit is reducing her borrowing power, so she lowers it to $2,000.
• She starts salary sacrificing into super for the First Home Super Saver Scheme.
• Twelve months later, she's pre-approved, organised and ready to buy.

Signs you're ready to start

• You're thinking about buying in the next one to two years
• You're unsure how much you can borrow
• You want to know which schemes you qualify for
• You have debts or credit issues to sort out
• Your fixed rate is ending soon

What does an early chat cost?

Usually nothing. Most brokers are happy to have an initial conversation at no cost, even if you're a year or more away from buying. It's a low-risk way to get a clear plan and avoid surprises later.

A simple countdown checklist

• 12 months out: first broker chat, credit check, savings plan
• 6 months out: stable job, tracked spending, suburb research
• 3 months out: documents ready, pre-approval, team lined up
• Ready to buy: inspections, contract review, offer or bid

Following this countdown means you'll be ready to move when the right home comes along, rather than scrambling to catch up.

Frequently asked questions

Is it too early to talk to a broker if I'm two years away?

No. It's a great time to plan your savings and finances.

Will talking to a broker affect my credit score?

No. A conversation doesn't involve a credit check. A check only happens when you apply.

How long does pre-approval last?

Usually three to six months.

Should I get pre-approval before I start looking?

Yes, ideally before you start looking seriously, so you know your budget.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

How to Choose the Best Mortgage Broker in Australia

This article first appeared on awesomelendingsolutions.com.au.

Around three in four new home loans in Australia are now arranged through mortgage brokers. But not all brokers are the same. The right broker can save you money, time and stress. The wrong one can leave you with a loan that doesn't suit you. Here's how to choose a good mortgage broker.

What does a mortgage broker do?

A mortgage broker helps you find, compare and apply for a home loan. They:

• Work out how much you can borrow
• Compare loans from a panel of lenders
• Explain options in plain English
• Check eligibility for government schemes
• Prepare and lodge your application
• Manage the process through to settlement
• Review your loan over time

How are brokers regulated?

Mortgage brokers must hold an Australian Credit Licence or be authorised as a credit representative under a licence. They must:

• Follow responsible lending rules
• Act in your best interests under the Best Interests Duty
• Disclose how they are paid
• Belong to the Australian Financial Complaints Authority (AFCA)

Many brokers are also members of industry bodies such as the FBAA or MFAA, which have their own standards and training requirements.

What makes a great broker?

1. A wide lender panel

The more lenders a broker can access, the more choice you have. Ask how many lenders they work with, and whether that includes major banks, smaller banks and non-bank lenders.

2. Experience with people like you

First home buyers, investors, self-employed borrowers and single parents all have different needs. Look for a broker with experience in your situation.

3. Clear communication

A good broker explains things simply, answers your questions and keeps you updated. You should never feel rushed or confused.

4. Transparency

A good broker tells you how they're paid, explains why they recommend a loan, and shows you the alternatives.

5. Ongoing support

The best brokers don't disappear after settlement. They review your loan regularly and help you as your life changes.

6. Strong reviews

Check Google reviews and ask friends and family for recommendations.

Questions to ask a broker

1. Are you licensed, or a credit representative? What is your licence number?
2. How many lenders do you work with?
3. How are you paid?
4. Have you helped people in my situation?
5. Do you work with lenders that offer the 5% Deposit Scheme and Help to Buy?
6. Will you review my loan after settlement?
7. What happens if I'm not happy?

Red flags to watch for

• Pressure to sign quickly
• Pushing one lender without showing alternatives
• Vague answers about fees or commissions
• Encouraging you to borrow the maximum
• Promising guaranteed approval
• Suggesting you leave out information on your application

Why a broker matters more in 2026

2026 has been a big year of change:

• The cash rate rose four times to 4.60%
• APRA introduced a debt-to-income limit from February
• The 5% Deposit Scheme expanded with no income caps
• New negative gearing and CGT laws passed
• SMSF residential borrowing was banned from August

With so many moving parts, an experienced broker who keeps up with the changes can make a real difference.

Broker or bank?

A bank can only offer its own products. A broker can compare many lenders. That doesn't mean a broker will always find a cheaper loan than your bank, but it means you'll see more options before you decide.

Local knowledge matters

If you're buying in NSW, a broker who knows the local market understands things like scheme price caps by postcode, valuation issues in certain suburbs and NSW stamp duty rules. Local experience can help avoid surprises.

What to bring to your first meeting

To get the most from your first chat, have these ready:

• Recent payslips or tax returns
• Bank statements showing savings
• Details of debts, like credit cards and car loans
• A rough idea of your budget and goals

This helps your broker give you a realistic picture from the start.

Frequently asked questions

Does using a broker cost me anything?

For most home loans, brokers are paid by the lender, so there's no direct cost to you. Some brokers charge fees for complex loans. They must tell you upfront.

Can a broker get me a better rate than my bank?

Often, yes, but not always. The value is in comparing the market and finding the right fit.

How do I check a broker's licence?

You can search ASIC's Professional Register for credit licensees and representatives.

Should I use more than one broker?

It's usually best to choose one broker you trust. Multiple brokers can lead to multiple credit enquiries.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

Home Loan Interest Rates in Australia and NSW: What Drives Them in 2026

This article first appeared on awesomelendingsolutions.com.au.

Interest rates have a huge impact on your home loan repayments. In 2026, rates have been rising, and many Australians are feeling the pinch. Understanding how rates are set, and why your rate might be different from someone else's, can help you get a better deal.

Where rates are in 2026

The Reserve Bank of Australia (RBA) raised the cash rate four times in 2026: in February, March, May and September. On 29 September 2026, it lifted the cash rate by 0.25% to 4.60%, its highest level since late 2011. The RBA said inflation remained too high and left the door open to further rises.

Most lenders passed these increases on to variable rates. That means many borrowers are paying hundreds of dollars more a month than at the start of the year.

How home loan rates are set

Your home loan rate isn't the same as the cash rate. Lenders set their own rates based on:

• The cash rate – the RBA's main tool
• Funding costs – what it costs the lender to borrow money
• Competition – how hard lenders are chasing new customers
• Risk – the type of loan and borrower
• Regulation – capital and lending rules from APRA

Why your rate may differ

Two people can borrow from the same lender on the same day and get different rates. That's because rates depend on:

• Loan to Value Ratio (LVR) – lower LVRs usually get better rates
• Loan purpose – owner-occupied loans are usually cheaper than investment loans
• Repayment type – principal and interest is usually cheaper than interest-only
• Loan size – bigger loans may get larger discounts
• Rate type – fixed and variable rates are priced differently
• When you took out the loan – new customers often get better rates than existing ones

Are rates different in NSW?

Most lenders offer the same rates across Australia. However, NSW borrowers tend to have larger loans because of higher property prices. A larger loan means each rate change has a bigger dollar impact. On a $800,000 loan, a 0.25% increase adds roughly $130 a month to repayments.

How to get a better rate

1. Ask your lender for a rate review. Many lenders will lower your rate if you ask, especially with a competing offer.
2. Compare the market. New customer rates are often lower.
3. Lower your LVR. Extra repayments or a higher valuation can unlock better pricing tiers.
4. Consider refinancing. If your lender won't move, switching could save thousands.
5. Check your loan type. Moving from interest-only to principal and interest can reduce your rate.

Fixed or variable in a rising rate market?

When rates are rising, some borrowers choose to fix for certainty. Fixed rates are based on what lenders expect rates to do in the future, so they're not always lower than variable rates. A split loan can give you some certainty while keeping flexibility.

Planning for further rises

The RBA has said it may raise rates again if needed. To prepare:

• Build a buffer in an offset account
• Test your budget at a rate 0.5% to 1% higher
• Cut unnecessary spending
• Talk to your lender early if you're struggling

An example

Emily has a $700,000 variable loan. At the start of 2026, her rate was 5.64%. After four rises of 0.25% each, her rate is 6.64%.

• Repayments at 5.64% over 30 years: about $4,040 a month
• Repayments at 6.64%: about $4,490 a month
• Increase: about $450 a month

By refinancing to 6.14%, she cuts her repayments to about $4,260, saving around $230 a month.

What the serviceability buffer means

When you apply for a loan, lenders test whether you could afford repayments at your rate plus 3%. As rates rise, this test gets harder to pass, which can reduce how much new borrowers can borrow.

Rates and your borrowing power

Higher rates don't just affect existing borrowers. They also reduce how much new buyers can borrow, because lenders test repayments at a higher assessment rate.

Frequently asked questions

Will rates go down?

No one knows for sure. The RBA has signalled more rises are possible if inflation stays high.

Do lenders pass on rate rises in full?

Usually, but not always. Some lenders pass on more or less than the RBA change.

Should I fix my rate now?

It depends on your budget and need for certainty. Compare fixed rates with variable and consider a split.

How can I find out what rate I could get?

A broker can give you real rate quotes based on your LVR, loan type and situation.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.

Investment Property Loans in Australia: A Plain-English Guide for 2026

This article first appeared on awesomelendingsolutions.com.au.

Property has long been a popular way for Australians to build wealth. But an investment loan isn't quite the same as a home loan. The rates, rules and tax treatment are different, and 2026 has brought some big changes. This guide explains how investment property loans work today.

What is an investment property loan?

An investment property loan is a loan used to buy a property you'll rent out, rather than live in. In the UK this is called a "buy to let" mortgage. In Australia, we simply call it an investment loan.

Lenders treat investment loans as slightly riskier than owner-occupied loans, so they usually:

• Charge a higher interest rate
• Have stricter rules on how much you can borrow
• Only count part of your rental income

How much deposit do you need?

Most investors need a 10% to 20% deposit plus costs. With a 20% deposit, you avoid Lenders Mortgage Insurance (LMI). Some lenders allow up to 90% or 95% with LMI.

Many investors don't use cash at all. Instead, they use the equity in their home as the deposit. This can let you invest without saving a large cash deposit.

Remember to also budget for stamp duty, which investors pay in full, plus legal fees, inspections and loan costs.

Interest rates for investors

Investment rates are usually a little higher than owner-occupied rates. Interest-only rates are usually higher again. With the cash rate at 4.60% after four rises in 2026, finding a competitive rate matters more than ever.

How lenders assess you

Lenders look at:

• Your income – including the expected rent, usually counted at 70% to 80%
• Your expenses – including the costs of owning the property
• All your debts – including your home loan
• The property – some lenders have limits on unit size, location or property type

Your repayments are tested at your rate plus 3%. From 1 February 2026, APRA also limits banks so that no more than 20% of their new investor lending can go to borrowers whose total debt is six or more times their income. Loans for new builds are exempt.

The 2026 tax changes

This is the biggest change for investors in decades. The new laws, passed in June 2026, mean:

• Negative gearing – for established residential properties bought after 7:30pm on 12 May 2026, rental losses can no longer reduce tax on your wages from 1 July 2027. They can only be used against residential rental income or capital gains, and carried forward.
• New builds – still qualify for negative gearing.
• Existing investments – properties held before the cut-off keep their current treatment.
• Capital gains tax – from 1 July 2027, the 50% CGT discount is replaced with inflation indexation and a 30% minimum tax on gains made from that date.
• Commercial property – the negative gearing changes only apply to residential property.

These changes affect cash flow and long-term returns, so talk to your accountant before you buy.

Interest-only or principal and interest?

• Interest-only – lower repayments, better cash flow, but no reduction in the loan.
• Principal and interest – higher repayments, but you build equity and usually get a lower rate.

Many investors use interest-only on investment loans and pay down their home loan first, because home loan interest isn't tax deductible.

Structuring your loans

Good structure can save you money and stress:

• Keep investment loans separate from your home loan
• Avoid cross-collateralising properties with one lender
• Use an offset account on your home loan
• Use separate splits for different purposes

An example

Michael and Sarah own a home worth $1.2 million with a $500,000 loan. They want to buy a $700,000 new townhouse to rent out.

• They use $175,000 of equity from their home for the deposit and costs.
• They borrow $560,000 against the townhouse.
• Because it's a new build, it keeps access to negative gearing under the 2026 rules.
• Expected rent is counted at around 80% by their lender.

Risks to consider

• Vacancies and maintenance costs
• Rising interest rates
• Falling values (most capitals have fallen in 2026)
• Changes to tax rules

Frequently asked questions

Can I use my home equity to buy an investment?

Yes. This is very common. Your lender will value your home and let you borrow against it, usually up to 80% of its value.

Are investment loan rates higher?

Usually, yes, by a small margin. Interest-only rates are generally higher again.

Does negative gearing still exist?

Yes, for new builds and for properties held before 12 May 2026. It's limited for established homes bought after that date.

Is now a good time to invest?

It depends on your goals and finances. Falling prices can create opportunities, but higher rates and the new tax rules change the numbers.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.