INVESTMENT LOANS
INVESTMENT LOANS
Educate, Facilitate, Accelerate
At Loan Theory, we make securing the right finance for your property investment simple and strategic. Whether you are buying your first investment property or expanding an established portfolio, we can help you find an investment loan that aligns with your goals and maximises your returns.
We work with over 30 lenders and have access to more than 200 loan products, so we can match you with an investment loan that suits your borrowing capacity, repayment preferences and long term strategy. Every lender has different rules around investment lending, including how they assess rental income, interest only terms and equity use. We help you navigate these differences so you can make informed decisions.
Investment loans can be suitable for:
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First‑time investors – Enter the market with the right loan structure
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Portfolio builders – Leverage equity to purchase additional properties
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Positive cash flow strategies – Optimise rental returns
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Capital growth strategies – Focus on long term property value increases
We will help you choose the right loan features, whether that is interest only repayments for cash flow flexibility, offset accounts to reduce interest or fixed rates for repayment certainty. We will also guide you on using equity effectively and structuring your loans to support future purchases.
Our process is simple. We start by understanding your investment goals, financial position and preferred strategy. We then present clear loan options so you can choose with confidence. We manage the application from start to finish, liaising with your lender and keeping you updated at every stage.
Once your investment loan is in place, we will continue to review it regularly to ensure it remains competitive and aligned with your evolving investment strategy.
With Loan Theory, you are not just getting finance for an investment property. You are getting a lending partner who understands property investment and will support your long term success.
COMMON INVESTMENT LOAN QUESTIONS
Here to answer all of your questions
What is your situation? What loan product is right for you? We have over 30 lenders, with over 200 different products. Not everyone is the same, not every loan is the same. Request a call today about your situation.
How is a constructionWhat is the difference between an investment loan and an owner‑occupier loan? loan different?
An investment loan is used to purchase a property you intend to rent out rather than live in. While the structure is similar to an owner‑occupier loan, interest rates, deposit requirements, and lending criteria can be different. Lenders may also assess your ability to manage both your personal and investment property expenses.
How much deposit do I need for an investment property?
Most lenders require at least a 5–20% deposit for an investment loan. A larger deposit can help you avoid Lenders Mortgage Insurance (LMI) and may give you access to better interest rates.
Can I use equity from my home to buy an investment property?
Yes. Many investors use equity in their existing home as a deposit for their investment property. This can be a smart way to get into the market without having to save a large cash deposit.
Should I choose interest‑only or principal‑and‑interest repayments?
Interest‑only repayments can reduce your monthly outgoings and maximise cash flow, which some investors prefer. Principal‑and‑interest repayments help you pay down your loan over time and build equity. The right choice depends on your investment strategy, cash flow, and long‑term goals.
How do lenders assess my borrowing capacity for an investment loan?
Lenders look at your income, expenses, debts, and assets — plus your expected rental income from the investment property. They will also apply a buffer to ensure you can still afford repayments if interest rates rise.
Will the rental income from the property count towards my loan application?
Yes. Lenders typically count 70–80% of your expected rental income to allow for vacancies and expenses. This helps boost your borrowing capacity while keeping the assessment realistic.
What is negative gearing and how does it work?
Negative gearing happens when the cost of owning an investment property — including loan interest and expenses — is higher than the rental income it generates. The loss can often be offset against your taxable income, potentially reducing your tax bill. This can be a useful strategy for some investors, but it’s important to get tax advice.
Can I buy an investment property through a company or trust?
Yes. Many investors purchase property through a company or trust for tax planning, asset protection, or estate planning purposes. This approach can be more complex and may require specialist legal and tax advice.
Are there tax benefits to having an investment property?
Potential benefits include negative gearing deductions, depreciation claims, and the ability to offset property expenses against rental income. The exact benefits depend on your situation, so it’s best to speak to an accountant.
How can a mortgage broker help me with an investment loan?
A mortgage broker can assess your borrowing capacity, compare investment loan products across multiple lenders, and recommend a structure that fits your investment goals. We also help with the application process, ensuring you meet the lender’s requirements and secure the right finance for your strategy.