Investment home loans explained

Average customer rating: 4.3/5
Written by James Hurwood
Reviewed by Eliza Buglar
Expert reviewed by Stephen Zeller
Updated 19 June 2025

What to know when comparing investment home loans

Some of the major factors to keep in mind when comparing investment home loans include:

  • The interest rate. Investment home loans will typically have higher interest rates than those attached to owner-occupier home loans, which makes it doubly important to shop around for a competitive rate.
  • Features. The home loan features you choose can make a massive difference when it comes to the value you get out of your home loan, so choose wisely!
  • The loan type. It’s important to pick a product type that suits your financial needs and cash flow requirements, whether you opt for a fixed rate, variable rate, interest-only or something else.

Expert tips for choosing an investment home loan

As General Manager of Money at Compare the Market, Stephen Zeller wants to see prospective property investors make the right choice when it comes to their investment home loan. With that in mind, he has some tips for you:

Stephen Zeller
General Manager – Money

Existing equity can form part of your new loan deposit

If you already own an owner-occupied property and you’re wanting to purchase real estate for investment purposes, consider that you may be able to draw on available equity in your owner-occupied property and put it towards your investment property purchase. If your equity can bring the loan-to-value ratio (LVR) of your proposed investment home loan under 80%, you’ll typically avoid paying lenders mortgage insurance (LMI), which could save you thousands of dollars.

Consider interest-only repayments

When purchasing an investment property, the option to make interest-only repayments may be available to you. Before deciding on a repayment type for your new home loan, it may be worth taking some time to discuss your investment strategy with your accountant or financial advisor. They’ll be able to help you decide which option may be most appropriate for you financially, both in the short and long term. The loan will be interest-only for a set period, and once that period ends, the loan will change to principal and interest. Unless you repay the loan in full at this time, your repayments will increase.

Our expert mortgage brokers are here to help!

Organising finance for an investment property can get complicated quickly. Our expert team of mortgage brokers are here to assist you with your home loan needs and discuss a variety of home loan products and scenarios which may be of interest to you based on your own individual circumstances. Contact our team to get the answers to any questions you may have, and they’ll be happy to assist you with your home loan search and application process.

What is an investment property home loan?

An investment home loan is a type of home loan for those looking to buy a property for investment purposes (i.e. renting it out to someone else to receive rental income). It’s different to an owner-occupier home loan, which are for buyers looking to purchase a primary place of residence for themselves.

While they’re a type of home loan with a very specific loan purpose, investment home loans aren’t necessarily what you’d call a niche product – most lenders that provide home loans will have an investment offering. In fact, 2025’s March quarter saw over $32 billion in new loans approved for investment purposes.1

Investment home loan rates, features and fees

Do investment home loans come with higher interest rates?

Can I get an interest-only investment home loan?

What features can I get on an investment home loan?

What do the fees look like on an investment home loan?

Meet our home loans expert, Stephen Zeller

Stephen Zeller
General Manager – Money

Stephen has more than 30 years of experience in the financial services industry and holds a Certificate IV in Finance and Mortgage Broking. He’s also a member of both the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) and the Mortgage and Finance Association of Australia (MFAA).

Stephen leads our team of Mortgage Brokers, and reviews and contributes to Compare the Market’s banking-related content to ensure it’s as helpful and empowering as possible for our readers.

1Australia Bureau of Statistics. Lending Indicators (March Quarter 2025). 2025.

2 Reserve Bank of Australia. Lenders’ Interest Rates (May 2025). 2025.

3  Australian Taxation Office. Rental expenses you can claim now. 2025.