As property markets across Australia remain strong in 2025, more Australians are exploring ways to build long-term wealth through real estate investment. If you’re considering stepping into the world of property investment, understanding how investment loans work is a vital first step.
At
Gardian Finance, we’ve helped hundreds of clients secure smart, strategic investment finance. Here's what you need to know.
💼 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 investment, rather than live in. These loans often have slightly different lending criteria, interest rates, and tax implications compared to owner-occupier loans.
You can use investment loans to buy:
💰 How Investment Loans Work in 2025
In today’s market, lenders are assessing borrowers more closely, but competition is still strong. Here's what that means for investors:
1. Higher Interest Rates
Investment loans typically come with slightly higher interest rates than owner-occupied loans. Lenders view them as higher risk, but shopping around with a broker can uncover competitive deals.
2. Loan-to-Value Ratios (LVR)
Many lenders require a 20% deposit for investment properties, though some may allow lower deposits with LMI (Lenders Mortgage Insurance).
3. Interest-Only Options
Some investors prefer interest-only loans to maximise cash flow and tax benefits. However, it’s important to plan for when the interest-only period ends, as repayments will increase.
📈 What Are the Benefits of Property Investment?
Rental income can provide ongoing cash flow
Potential for capital growth over time
Tax benefits, including deductions on interest, property costs, and depreciation
Option to leverage equity for future purchases
🔍 What to Consider Before Applying
Affordability: Make sure you can manage repayments even if rates rise or the property is vacant.
Investment Strategy: Are you looking for long-term capital growth or high rental yield?
Structure Matters: The right loan structure can save thousands. Offset accounts, redraw, or splitting loans can all be beneficial.
Tax Implications: It’s important to get advice from your accountant on things like negative gearing and CGT (capital gains tax).
Get Pre-Approved: Knowing what you can borrow helps you act quickly when the right property comes up.
👋 How Gardian Finance Can Help
With over 20 years of experience in the Mackay region, the team at Gardian Finance understands the local market and investment lending landscape. As mortgage brokers, we compare multiple lenders to find a loan that suits your goals — not just your numbers.
Whether you’re buying your first investment or expanding your property portfolio, we’ll help you:
Understand your borrowing power
Structure your loan smartly
Navigate lender policy and pre-approval
Work alongside your accountant or financial planner
Ready to Invest in Your Future?
📍 Based in Mackay and ready to invest? The right loan is just as important as the right property. Talk to Gardian Finance today about how to finance your next investment — and start building long-term wealth.
