Investment lending is assessed differently from owner-occupier loans. Understanding the basics helps you plan portfolio growth with fewer surprises.
Key differences
- Deposit requirements are often higher (commonly 10–20%)
- Interest rates may differ from owner-occupier products
- Rental income is considered but usually discounted in servicing tests
Interest-only vs principal & interest
Interest-only periods can improve cash flow but do not build equity through repayments. Lenders may limit interest-only terms based on policy.
Equity strategies
Equity in existing property can fund deposits for further investments. Lenders assess total exposure across your portfolio.
Structure matters
Loan structure affects tax outcomes — speak with your accountant alongside your broker for coordinated advice.
Next step
Compare investment loan options with a broker who understands portfolio planning, not just headline rates.
