Pricing and fees
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Investment property loans · Victoria
Compare the loan behind your Victorian investment property
Investment loans can differ in pricing, serviceability, rental-income treatment and features. A structured comparison helps you understand the deposit, repayments, total costs and policy fit before you commit.
Compare investor lending across 40+ lenders
The short answer
How is an investment property loan different from a home loan?
It is still residential mortgage finance, but the stated purpose is investment rather than owner occupation. Lenders may apply different rates, fees, deposit requirements, interest-only rules and serviceability treatment. Rental income may assist the assessment, although lenders usually shade it rather than use the full amount.
Model before you commit
Compare policy and total cost—not the rate in isolation
The loan with the lowest advertised rate may not provide the valuation, serviceability outcome, features or flexibility that the application needs.
- Compare variable, fixed, offset and redraw features against the intended holding period
- Allow for Victorian land transfer duty and ongoing property costs
- Check how the lender treats proposed and existing rental income
- Understand valuation risk, LVR limits and any Lenders Mortgage Insurance
Rental-income policy
A lender may require a lease, rental statement or licensed agent’s appraisal and will commonly use only part of the verified rent in its assessment.
Property acceptability
Location, size, title, zoning, construction type and marketability can affect valuation and the lender’s acceptable LVR.
Loan purpose
Loan-purpose records matter. Funds used for the investment purchase should be traceable and clearly separated from private spending.
Compare the structure
Principal and interest or interest-only?
Repayment type changes short-term cash flow and the path of the debt. The right comparison includes the interest-only period, later repayments and total interest—not only the first monthly payment.
Decision point
Principal and interest
Interest-only period
Repayment
Pays interest and reduces principal from the start.
Pays interest only for an approved period, so principal generally does not reduce.
Cash flow
Usually higher initial repayments.
Usually lower initial repayments, subject to rate and fees.
Later change
Repayments follow the original amortisation schedule.
Repayments can rise when the loan reverts to principal and interest.
Total interest
Usually less if all else is equal.
Usually more because the principal remains higher for longer.
How it works
A lending plan built around the whole portfolio.
- 01
Confirm purchase price, deposit source, acquisition costs, expected rent and preferred cash buffer.
- 02
Compare suitable lender policies, valuations, repayments, features and total cost.
- 03
Seek approval before committing and coordinate valuation, documents and settlement.
Common questions
Clear answers for Victorian property investors
Are investment loan interest rates higher?
They can be. Pricing varies by lender, LVR, repayment type, loan size and product. Compare the actual offered rate and fees for the complete scenario.
Can I use an offset account with an investment loan?
Many variable investment loans offer an offset account, sometimes for a fee. The usefulness depends on available cash, product pricing and advice about your broader structure.
What costs should I budget for in Victoria?
Common upfront costs include land transfer duty, conveyancing, inspections, registration and loan costs. Ongoing costs may include rates, insurance, management, maintenance, owners corporation fees and land tax where applicable.
Does pre-approval guarantee an investment loan?
No. Pre-approval is conditional and time-limited. Final approval commonly depends on the selected property, valuation, unchanged circumstances and satisfactory documents.
Can I refinance an existing investment property loan?
Potentially. Compare the new rate and features against discharge, application and valuation costs, serviceability, tax record-keeping and any effect on the rest of the portfolio.
Reviewed 14 September 2026 by Chris Berry. General information only and not financial, investment, legal, tax or accounting advice. Lending criteria, rates, fees, valuations, rental-income treatment and tax outcomes vary. Loan approval and future investment performance are not guaranteed.
Official information: Moneysmart property investment guidance · ATO residential rental property guidance · Consumer Affairs Victoria buying guidance
Ready when you are
Let’s find your better rate.
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