What is investor home loan?
An investor home loan is a mortgage to fund a property bought to rent out rather than live in — typically priced 0.20-0.40% above owner-occupier rates and assessed against rental income plus the borrower's own.
An investor home loan is structured for a property the borrower will rent out instead of occupying. Lenders price it 0.20-0.40% above the equivalent owner-occupier rate because investor lending is treated as a higher prudential risk category under APRA rules.
Serviceability assessment for investor loans counts 75-80% of the projected rental income (the 'shading' covers vacancy + management costs) on top of the borrower's other income. Interest-only repayments are far more common on investor loans because of the tax treatment of interest deductibility against rental income.
Investor loans interact with tax rules around negative gearing, capital gains tax, and depreciation (Div 40 + Div 43). The financing structure should be designed alongside an accountant or tax adviser, not in isolation.
investment property loan · investor mortgage · rental property loan
- Interest-only (IO) — An interest-only loan asks you to pay only the interest charge each period — the loan principal stays unchanged until th…
- Home equity — Equity is the portion of the property you own outright — current property value minus the outstanding loan balance. A $7…
General information only — not personal financial advice. Verified against https://ratesniffers.com.au/glossary on 2026-06-01.