Investment Loans Australia

First Investment Property

Taking your first step into property investment requires a different approach to a home loan. We help first-time investors understand deposit requirements, rental income treatment, and how investment lending is assessed — so you enter the market informed.

Portfolio Investor

Managing multiple investment properties creates complexity around security, LVR and serviceability. We structure each purchase to preserve flexibility — keeping properties as separate securities where possible and managing your overall debt position.

Equity Investor

If your owner-occupied or investment property has grown in value, you may be able to use that equity as a deposit — or full funding — for a new purchase. We calculate your usable equity and structure the lending efficiently.

Converting Home to Investment

Turning your existing home into an investment while buying a new one is a common strategy. We help you understand the tax implications, lender assessment differences and how to structure both loans to maximise your position.

Commercial Property Investor

Commercial investment lending is assessed differently — lease terms, property type and tenant quality all factor in. We connect commercial investors with lenders who specialise in commercial income-producing properties.

Off-the-Plan Buyer

Off-the-plan investment requires careful finance structuring. Settlement dates can shift, valuations at completion may differ from purchase price, and lender policies on off-the-plan vary. We help investors navigate these risks.

Repay both principal and interest each period. Equity builds faster and rates are typically lower than IO. Best for long-term investors focused on building equity rather than maximising cash flow.

Pay only the interest during the IO period, reducing monthly outgoings. Repayments are higher after IO reverts to P&I. Common for negatively geared investment strategies focused on cash flow during the hold period.

Access equity in an existing property as a revolving line of credit. Useful for funding deposits on new investments without selling existing assets. Interest is charged only on the drawn balance.

What is the minimum deposit for an investment property loan in Australia?

Most lenders require a minimum 20% deposit for investment property loans, meaning you need at least 20% of the purchase price plus purchase costs. Some lenders will accept a 10–15% deposit, but Lenders Mortgage Insurance (LMI) typically applies above 80% LVR and can be significant on an investment loan. A K&M Capital broker can help you find the most competitive option for your deposit level.

Can I use equity in my existing property to buy an investment property?

Yes — using equity is one of the most common ways Australians fund investment property purchases. If your owner-occupied or existing investment property has grown in value, you may be able to access that equity as a deposit or full funding for a new purchase. A broker can calculate your usable equity and structure the lending to keep your properties as separate securities if that suits your strategy.

Are investment property loan rates higher than owner-occupier rates?

Yes, investment loan rates are generally 0.2–0.8% higher than equivalent owner-occupier rates. This is because lenders consider investment lending slightly higher risk. Interest-only investment loans also typically carry higher rates than principal and interest. That said, rates vary significantly between lenders — a broker comparing 35+ lenders can still find a competitive rate for your situation.

Can I get an interest-only loan for an investment property?

Yes. Interest-only (IO) repayments are common for investment properties because they reduce your monthly outgoings and can help with cash flow management. Most lenders offer IO periods of 1–5 years. After the IO period ends, the loan reverts to principal and interest, which increases repayments — so it's important to plan ahead. Your broker can help you assess whether IO suits your investment strategy and tax position.

Can I claim tax deductions on an investment property loan?

Generally yes — interest on an investment property loan is tax-deductible in Australia when the property is genuinely available for rent. This is the basis of negative gearing, where your rental expenses (including interest) exceed your rental income, and the difference is offset against other income. The ATO has specific rules around deductibility, so we always recommend confirming your position with a qualified tax adviser.