Investment Property Loans Explained: Compare, Strategies, and Rates

Why Choose Stryve for Your Investment Loan?

When it comes to investment property loans, choosing the right lender and the right loan can significantly impact your returns. At Stryve Finance, we go beyond rate comparison. We partner with you to build a finance strategy that supports your long-term property goals.

Compare Investment Loan Options

Choosing the right investment loan can significantly impact your financial returns. At Stryve Finance, we help you compare key loan features to ensure your mortgage supports, not hinders, your investment strategy. Here’s a breakdown of the main options available to property investors:

Fixed vs Variable Investment Loans

1. Fixed Rate Loans

Lock in your interest rate for a set period (usually 1 to 5 years), giving you predictable repayments and shielding you from market fluctuations.

• Budget certainty
• Protection from rising rates
• Useful for cash flow planning

• Less flexibility (early exit fees may apply)
• May miss out on rate drops

2. Variable Rate Loans

Your rate can change with the market. These loans typically offer more features and flexibility, including offset accounts and redraw facilities.

• More flexible
• Access to money-saving features
• May benefit from falling interest rates

• Monthly repayments can increase
• Harder to budget for long term

At Stryve, we can help you choose based on your cash flow, risk tolerance, and market outlook.

Interest-Only vs Principal & Interest

1. Interest-Only Loans

For a set period (e.g., 5 years), you only pay the interest, not the loan principal. This keeps your repayments lower and maximises short-term cash flow, which can be ideal for investors.

• Lower initial repayments
• Potential for higher tax deductions
• More capital available for renovations or additional purchases

2. Principal and Interest Loans

You pay down both the loan and interest from day one, building equity over time.

• Builds equity faster
• Lower total interest paid over the life of the loan
• Often comes with lower interest rates than IO loans

We’ll assess your goals to structure the loan for long-term growth and tax effectiveness.

Loans with Offset Accounts

An offset account is a linked transaction account that reduces the interest charged on your loan balance.

If you owe $500,000 and have $50,000 in your offset, you’ll only be charged interest on $450,000.

• Pay off your loan faster without locking in funds
• Maintain flexibility with your money
• Reduces interest without reducing loan access

What Are Investment Property Loans?

An investment property loan is a type of mortgage used to purchase real estate with the intention of generating income, either through rental returns, capital growth, or both. Unlike owner-occupier loans (used to buy a home you live in), investment loans are designed specifically for people looking to grow their wealth through property.

Whether you’re a first-time investor or a seasoned buyer expanding your portfolio, choosing the right loan structure is critical to your success.

How Investment Loans Differ from Owner-Occupier Loans

• Interest rates are slightly higher for investment loans
• Stricter lending criteria, including larger deposit requirements
• Rental income may be considered, but discounted to account for vacancy risks
• You may have access to features like interest-only periods, which can improve cash flow

Tax Benefits of Investment Property Loans

One of the biggest advantages of investing in property is the range of tax benefits available when financed through an investment loan:

• Interest on the loan may be tax-deductible
• You can claim expenses related to managing the property, including insurance, repairs, and depreciation
• With negative gearing, you may offset property-related losses against your taxable income

Note: Tax laws are complex, always consult a tax professional when structuring your investment.

Who Should Consider an Investment Property Loan?

Investment property loans can suit a range of financial goals and investor profiles:

• First-time investors looking for long-term wealth growth
• Rentvesters who rent where they live but own investment properties elsewhere
• Experienced investors building a diversified property portfolio
• Self-employed buyers who want to use property as part of their retirement strategy

At Stryve Finance, we help you determine whether an investment property loan is right for you and tailor the structure to support your financial goals. For more detailed guidance on how investment loan interest is treated at tax time, visit the Australian Taxation Office’s resource on claiming interest and borrowing expenses.

How Much Can You Borrow for an Investment Property?

One of the first questions every property investor asks is: how much can I actually borrow? The answer depends on a few key factors, but with the right strategy and structure, you may be able to borrow more than you think.

At Stryve Finance, we assess your full financial position and compare multiple lenders to find borrowing options that suit your goals. Whether you’re using a deposit or tapping into equity from another property, we’ll help you understand your limits and how to stretch them wisely.

Loan-to-Value Ratio (LVR) Explained

Your Loan-to-Value Ratio (LVR) is the percentage of the property’s value you’re borrowing. For example:

• A $500,000 loan on a $625,000 property = 80% LVR

Most lenders prefer an LVR of 80% or lower, as this reduces risk and usually avoids Lenders Mortgage Insurance (LMI). However, some investors can borrow up to 90-95% with the right profile and loan structure.

💡 Tip: The lower your LVR, the better your interest rate options and borrowing capacity.

Using Equity from Your Existing Property

Already own a home or investment property? You might not need a cash deposit at all.

By leveraging available equity, you can access funds for your next investment. For example:

• If your home is worth $800,000 and your current loan is $500,000, you may access up to $140,000 in equity (based on 80% LVR).

This strategy allows you to grow your portfolio without saving for a new deposit each time.

How Lenders Assess Borrowing Power

Lenders evaluate your borrowing power based on:

• Income (PAYG or self-employed)
• Existing debts (including credit cards and other loans)
• Rental income from investment properties
• Living expenses and dependents
• Credit score and repayment history

At Stryve, we know which lenders take a more flexible approach and we use that knowledge to help you borrow more, with less friction.

How to Get Approved for an Investment Loan

Getting approved for an investment property loan isn’t just about having a deposit, it’s about demonstrating to lenders that you’re a low-risk, financially capable investor. At Stryve Finance, we help you strengthen your application and navigate the approval process with ease.

Here’s what you need to know before you apply:

Eligibility Criteria

To qualify for an investment loan, you’ll generally need to meet the following conditions:

• Stable income from employment or self-employment
• A good credit score (typically above 650)
• A genuine deposit (usually 10-20% of the property’s value)
• Clear proof of any existing assets or liabilities

While every lender has slightly different criteria, Stryve works with a panel of over 40 to match you with those who best suit your financial profile.

What Lenders Look For

Investment loans carry slightly more risk from a lender’s perspective, so they dig deeper into your financial situation. Here are the main areas they’ll assess:

• Your income and expenses: including rental income projections
• Your credit history: late payments or defaults can impact approval
• Debt-to-income ratio: how your current loans affect your borrowing power
• The property itself: its location, type, and rental demand can influence approval

With our expert brokers, you’ll be guided through lender preferences and matched with options most likely to approve your application.

Documents You’ll Need

Having the right documentation prepared will speed up your approval and show you’re serious. Most lenders will require:

• Latest payslips and bank statements (or tax returns if self-employed)
• Proof of savings or equity being used as deposit
• Details of existing mortgages, loans, and liabilities
• Rental appraisal or lease agreement (if you’re buying a tenanted property)

Stryve helps you prepare and package your application to ensure it’s lender-ready, improving both your approval chances and turnaround time.

💡 Pro Tip: The better prepared your application, the stronger your negotiation power. Stryve can also help you get pre-approved, giving you more confidence when making offers.

Investment Strategies for Property Buyers

The right loan is only part of a successful property investment strategy. At Stryve Finance, we go beyond just rates, we help you structure your loan to support your long-term financial goals.

Whether you’re a first-time investor or growing your portfolio, the strategy behind how you borrow, repay, and leverage equity can make a significant difference to your returns.

First-Time Property Investors

Getting started in property investment can be daunting, but with the right support, it doesn’t have to be.

At Stryve, we help first-time investors:

• Understand the pros and cons of interest-only vs principal & interest loans
• Access low-deposit investment loan options with lender support
• Structure their first loan for future equity access to buy again
• Avoid common traps like overcommitting or buying purely for tax

💡 Tip: Focus on strong rental yields and locations with long-term growth potential.

Portfolio Builders

Already own one or more investment properties? Your borrowing strategy should evolve with your portfolio.

We help seasoned investors:

• Leverage equity across multiple properties to access new finance
• Balance cash flow and capital growth in loan selection
• Use split loans and offset accounts to optimize tax and flexibility
• Review and refinance existing loans for better rates and terms

💡 Advanced strategy: Use staggered fixed and variable loans across properties to hedge rate risk.

Negative Gearing and Cash Flow Planning

Tax is a major consideration in property investing. Many investors use negative gearing, where the cost of the loan exceeds rental income to offset taxable income.

But smart cash flow planning goes deeper:

• We help you forecast your pre- and post-tax cash flow
• Choose loan features (e.g., offset, redraw) to enhance flexibility
• Identify opportunities to reduce out-of-pocket costs over time

💡 Remember: Investment is about more than tax. Cash flow sustainability matters.

The Right Loan for the Right Strategy

Your investment plan should drive your loan choice, not the other way around. That’s why Stryve brokers take the time to understand:

• Your goals (cash flow, growth, retirement)
• Your risk tolerance
• Your tax position
• Your future property plans

Then, we recommend loan products and structures that serve the plan, not just the property.

Investment Loan Rates - What to Expect in 2025

As we move through 2025, the Australian property market is experiencing a renewed wave of investor interest, driven in part by shifting economic conditions and improving loan affordability.

Following recent decisions by the Reserve Bank of Australia (RBA) to cut the cash rate, many lenders have responded by lowering their interest rates on investment property loans. This makes it an opportune time for investors to reassess their borrowing strategy and potentially lock in more favourable terms.

Current Market Snapshot

While rates vary between lenders and loan types, here’s what investors can generally expect in today’s market:

Note: These figures are indicative. Your actual rate will depend on your loan-to-value ratio (LVR), credit profile, and loan features.

If you're comparing rates and loan types, ASIC’s guide to investment property loans provides unbiased information to help you weigh your options.

Trends to Watch in 2025

• More rate cuts may be coming: Economists predict additional RBA rate reductions, which could further lower investor mortgage rates.
• Increased lender competition: Banks and non-bank lenders are competing aggressively for investor borrowers, creating room for negotiation.
• Tighter credit for high-LVR borrowers: While rates are falling, some lenders are tightening policies for loans with less than 20% deposit.

How Stryve Helps You Get the Best Rate

At Stryve Finance, we work across a broad panel of lenders to compare interest rates, negotiate on your behalf, and ensure you’re matched with a loan that suits your strategy.

Whether you're focused on maximising cash flow, minimising interest costs, or planning for future portfolio expansion, we tailor your loan to your goals.

FAQs About Investment Property Loans

What is the minimum deposit for an investment property loan?

Most lenders require a minimum deposit of 10% to 20% of the property’s value. However, if your deposit is under 20%, you may be required to pay Lenders Mortgage Insurance (LMI). A larger deposit not only reduces your borrowing risk but can also help you access more competitive interest rates.

Can I use equity from my current home to invest?

Yes, many investors use the equity in their existing home as a deposit for their next property. For example, if your home is valued at $800,000 and your mortgage is $500,000, you may be able to access a portion of the $300,000 equity to fund a new investment, without needing to save a separate deposit.

Is an interest-only loan a good idea for investors?

An interest-only loan can be a smart strategy for certain investors, especially those focused on maximising cash flow or claiming tax deductions on loan interest. However, it’s important to plan for the future when repayments eventually switch to principal and interest. Our brokers can help you decide if this structure suits your financial goals.

How does capital gains tax (CGT) affect investment properties?

Capital gains tax applies when you sell an investment property for a profit. If you’ve held the property for over 12 months, you're generally eligible for a 50% CGT discount on the gain. However, the rules can be complex, especially if you’ve used the property as your home at any point, so it’s best to speak with a tax advisor.

Are investment property loan interest payments tax deductible?

Yes, in most cases, the interest paid on your investment loan is fully tax-deductible, as long as the loan was used to purchase or improve a property intended to generate income. This is a key benefit of property investing, especially when paired with negative gearing strategies.

How many investment properties can I have?

There’s no official limit, but your ability to borrow for multiple properties depends on your income, equity, credit score, and cash flow. As a mortgage broker, Stryve can help you structure your loans to support future borrowing potential and long-term growth.

How long does it take to get approved for an investment loan?

Pre-approval can take anywhere from 24 hours to a few days, depending on the lender and your documentation. Full approval may take 5 to 10 business days, especially if property valuations are required. Our brokers help you fast-track the process by managing all paperwork and lender communications on your behalf.

Ready to Invest? Let’s Talk

You’ve got the vision. Now let’s fund it.

Whether you’re taking your first step into property investment or looking to grow your portfolio, Stryve Finance is here to help you secure the right investment loan, fast, smart, and stress-free.

Unlike banks, we tailor every recommendation to your financial goals, not a lender’s sales targets. We guide you through lender policies, loan types, tax benefits, and structuring strategies. So your investment doesn’t just grow, it performs.