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What Is an Investment Loan?
An investment loan is a type of home loan used to purchase a property that you intend to rent out or hold as an asset, rather than live in yourself. If you are thinking about buying an investment property in Regional Victoria, Finance Hub can help you access investment loan options from banks and lenders across Australia. Whether you are a first-time property investor or looking to grow an existing portfolio, understanding your investment loan options is an important first step.
Investor interest rates and loan conditions differ from standard owner-occupier home loans. Lenders typically apply higher investor interest rates and stricter assessment criteria because investment lending is considered a higher risk. That is why working with a mortgage broker like Finance Hub can make a real difference. We compare investment loan products across a wide range of lenders so you can see what suits your situation.
Variable Rate vs Fixed Rate
One of the first choices you will face when taking out a property investment loan is whether to go with a variable rate or a fixed rate. A variable interest rate moves with the market, which means your repayments can go up or down over time. A fixed interest rate locks in your repayments for a set period, giving you more certainty around your costs. Some investors split their loan between both options as part of their overall property investment strategy.
Finance Hub can walk you through the pros and cons of each option based on your goals and financial situation. Calculating investment loan repayments accurately is important when you are planning your cash flow, and we can help you understand what your repayments might look like under different rate scenarios.
Interest Only vs Principal and Interest
Another key decision for property investors is whether to choose an interest only investment loan or a principal and interest loan. With interest only, you only pay the interest portion of the loan for a set period, which keeps your repayments lower in the short term. This can be useful for investors who want to maximise their cash flow or take advantage of tax benefits such as negative gearing benefits. With a principal and interest loan, you pay down the loan balance over time, which builds equity in the property more quickly.
It is worth noting that under current APRA guidelines, interest only loans and investor loans generally attract higher risk weights than owner-occupied principal and interest loans. This can affect the investment loan interest rate you are offered. Finance Hub can help you understand how these factors apply to your specific investment loan application.
Investor Deposit and LVR
When it comes to investor borrowing, most lenders require a minimum investor deposit of 20 per cent to avoid paying Lenders Mortgage Insurance (LMI). The loan to value ratio (LVR) is the amount you borrow compared to the value of the property. A lower LVR generally means a better investment loan interest rate and lower overall costs. If your LVR is above 80 per cent, LMI will usually apply, and the premium is an additional cost to factor into your budget.
If you already own property, you may be able to leverage equity from your existing home or investment property to fund your investor deposit. This is known as equity release, and it can be a powerful tool for portfolio growth without needing to save a separate cash deposit.
Tax Considerations for Property Investors
Property investment comes with a range of potential tax benefits that are worth understanding. Claimable expenses such as property management fees, council rates, insurance, repairs, and interest on your investment loan may be deductible against your rental income. If your investment property costs more to hold than it earns in rental income, this is known as negative gearing. For properties held at 7:30pm AEST on 12 May 2026, the existing negative gearing rules continue to apply. However, for residential properties acquired after that date and time, new rules will take effect from 1 July 2027, which will quarantine rental losses so they can only be offset against other rental income or future property gains, not against salary or wages. Finance Hub recommends speaking with a qualified tax professional about how these changes may affect your property investment strategy, as the rules are complex and individual circumstances vary.
Stamp duty is another upfront cost to factor in when buying an investment property. The amount varies depending on the state or territory and the purchase price of the property.
Rental Income and Vacancy Rates
A key part of any property investment strategy is understanding the rental income your property is likely to generate. Lenders will assess your expected rental income as part of your investment loan application, though they typically only use a portion of it when calculating your borrowing capacity. Vacancy rates in your target area are also worth researching, as a high vacancy rate can affect your ability to need rental income consistently and cover your loan repayments.
Finance Hub works with clients across Regional Victoria who are looking to build wealth through property investment. Whether you are interested in a rental property loan for a house, unit, or apartment, or you are exploring investment property finance for a larger portfolio, we can help you access investment loan options that suit your goals. We can also assist if you are looking at an investment loan refinance to get a better rate or release equity from an existing property.
Speak with the team at Finance Hub to find out more about investment loan products, investment loan features, and how we can support your property investment goals.
Step 1: Get in Touch
The first step is easy. Reach out to our team by phone, email, or through our website. Whether you have a clear goal in mind or you are just starting to explore your options, we are here to help. There are no silly questions and no pressure.
Step 2: Initial Consultation
We sit down with you, either in person at our Colac office or over the phone, to get a clear picture of your situation. We take the time to understand your goals, your financial position, and what you are hoping to achieve.
Step 3: Review Your Financial Position
Our team takes a close look at your income, expenses, assets, and liabilities. This helps us understand your borrowing capacity and identify the most suitable options for your needs.
Step 4: Research and Compare
With access to a wide panel of lenders, we do the legwork for you. We compare products, interest rates, fees, and features to find the solution that fits your goals and your budget.
Step 5: Present Your Options
We present our recommendations in plain language, no jargon. We walk you through the options so you can make an informed decision with confidence. You choose what works best for you.
Step 6: Application and Approval
Once you are happy to move forward, we prepare and lodge your application on your behalf. We manage the process with the lender, keep you updated every step of the way, and work to get your approval as smoothly and quickly as possible.
Step 7: Settlement and Beyond
When your loan settles, our job is not done. We stay in touch to make sure everything is working for you. As your circumstances change over time, we are here to review your finance and make sure it continues to meet your needs.
From the first conversation to long after settlement, Finance Hub is in your corner.
Finance Hub works with property investors across Regional Victoria to access investment loan products from banks and lenders across Australia. Request a callback with our team to talk through your situation.
Request a CallbackGetting started is straightforward. You can reach out to us by phone, email, or through our website to book an initial consultation. This first conversation is all about getting to know you, understanding your goals, and giving you a sense of how we can help. There is no pressure and no obligation. We will listen to your situation, answer any questions you have, and let you know what the next steps might look like. Whether you are just starting to think about buying a property or you are ready to move forward with an application, we are here to help you feel supported and informed every step of the way.
In most cases, our clients do not pay us directly for our mortgage broking services. We are typically paid a commission by the lender once your loan settles. We are required by law to be transparent about how we are paid, so we will always explain this to you upfront before you commit to anything. If there are any situations where a fee may apply, we will let you know clearly and in advance. Our priority is making sure you feel informed and comfortable with the process from the very beginning, with no surprises along the way.
The documents required will depend on your individual circumstances and the type of loan you are applying for. Generally speaking, most lenders will want to see proof of your identity, evidence of your income such as payslips or tax returns, details of your assets and liabilities, and information about the property or purchase you are looking to fund. If you are self-employed, you may need to provide additional documentation such as business financials. At Finance Hub, we will give you a clear checklist of everything you need to pull together before we get started, so there are no unnecessary delays in the process.
A mortgage broker acts as the go-between for you and a range of lenders. Instead of you having to approach each bank or lender on your own, a mortgage broker does the legwork for you. At Finance Hub, we look at your situation, understand what you are trying to achieve, and then search through a wide range of loan products to find options that suit your needs. We handle the paperwork, communicate with lenders on your behalf, and guide you through each step of the process. Our goal is to make the whole experience feel manageable and straightforward, no matter where you are in Regional Victoria.
The timeline for a loan application can vary depending on a number of factors, including the type of loan, the lender involved, and how quickly all the required documents can be gathered. In general, once we have everything we need from you, we work as efficiently as possible to move things forward. Some applications can be assessed within a few business days, while others may take a few weeks depending on the complexity of the situation. At Finance Hub, we keep you informed throughout the process so you always know where things stand. We believe clear communication is just as important as the outcome itself.
Having a less than perfect credit history does not automatically mean you are out of options. There are lenders who specialise in working with people who have experienced financial difficulties in the past, and Finance Hub has access to a range of these lenders. We will take the time to understand your situation honestly and openly, and explore what may be available to you based on your current circumstances. We will never make promises about outcomes, but we will always give you a clear and honest picture of where you stand and what your options might look like. Everyone deserves to have their situation heard.
Refinancing means replacing your existing loan with a new one, either with your current lender or a different one. People refinance for all sorts of reasons, such as wanting to consolidate debt, access equity in their property, or find a loan structure that better suits their current situation. Whether refinancing makes sense for you depends entirely on your personal circumstances, and it is not a decision to make lightly. At Finance Hub, we can sit down with you, review your current loan, and help you understand what your options are. We will always give you an honest assessment so you can make an informed decision that is right for you.
Absolutely. Finance Hub was built with Regional Victoria in mind. We understand that living outside of a major city can sometimes make it harder to access the same level of financial support that people in metropolitan areas take for granted. We work with clients across the region, whether you are in a large regional town or a smaller rural community. We can meet with you in person where possible, or connect with you over the phone or video call to make things as convenient as possible. Distance is not a barrier when it comes to getting the support you deserve.
Finance Hub can assist with a wide range of lending needs. Whether you are looking to purchase your first home, refinance an existing loan, invest in property, buy a vehicle, or fund equipment for your business, we have the knowledge and lender connections to help. We also work with clients who have more complex financial situations, such as self-employed individuals or those with variable income. No matter what your goal is, we take the time to understand your full picture before exploring what options may be available to you. We are proud to support clients right across Regional Victoria with their varied lending needs.
When you go directly to your bank, you are only seeing the products that one lender offers. Finance Hub works with a broad panel of lenders, which means we can look at a much wider range of options for you. We are not tied to any single institution, so our focus is entirely on finding something that suits your circumstances. We also take the time to understand your goals and explain things in plain language, so you always know what is happening and why. For people in Regional Victoria, having a local broker in your corner can make a real difference when it comes to getting the right support.