When you are investing in property, choosing the right lender with the right credit policy for your scenario becomes even more important. Borrowing capacity, negative gearing policy and rental income shading can vary substantially depending on your chosen home lender.  

Using an expert mortgage broker takes the hassle out of navigating the investment loan landscape- we will find the right lender and loan for you from our panel of over 40 top home lenders. 

With our extensive panel comprised of over 40 different lenders, we will find the right investment property loan option for your unique circumstances to do with your great home loan interest rate.

We will provide you a full, detailed preliminary assessment that will detail all your figures, borrowing capacity, repayments and much more so you can shop for your new investment with confidence .

Whether you need it for tax reasons or just want to maximise your cashflow, you can request to make repayments on your new investment home loan interest-only. Most lenders will accept an initial interest-only period of up to 5 years.


All banks and lenders are required to identify new home loan applicants. Providing your driver’s licence, passport and Medicare card will usually cover off all bank criteria here. You can look to substitute other documents if you are missing any of the above.

Proof of equity / cash deposit

The amount of cash required for an investment purchase can be quite different to that required for an owner-occupied purchase. We will calculate these figures and requirements for you as part of your preliminary assessment.

Proposed Rental Income

We will either need an estimated rental return for your proposed investment, or a formal rental appraisal from a registered agent if you have already located a specific property.

Details of your assets & liabilities

You will need to provide information and supporting documents for any liabilities you currently have in addition to details of your current assets. To ensure our assessment is accurate, we also need to make sure we have full details of living expenses and any other commitments.

Desired investment location (if known)

When investing in property, government costs, fees and charges vary by state. As such, it can be helpful if you have an idea of which state and potential location you would like to invest in so we can fine tune your figures. If you haven’t finalised this yet, we can work around this, however.

It’s a great idea to speak with your mortgage broker before you begin your investment property search.

We will provide you with a detailed breakdown of all the information you need to purchase with confidence. 

As part of your free preliminary assessment, Simplifi Lending can:

  • Calculate your borrowing capacity and purchasing power
  • Find out which lenders are likely to approve your home loan application
  • Educate you on savings and deposit requirements for investment loans
  • Provide you with information on loan repayments, fees and charges
  • Give you guidance on property contract negotiations and clauses
  • Answer any other questions you may have about property investing

Want to know more about the home loan application process?

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  1. Contact Simplifi Lending for an obligation-free chat with our mortgage broker
  2. Use our secure client portal to enter your information and upload your supporting documents
  3. Your mortgage broker will prepare a full preliminary assessment and present your lender options
  4. Once your preferred lender has been selected, we will prepare and submit your pre-approval application.
  5. With pre-approval in hand, you can go property hunting with confidence. Once you have located a property, we will convert your pre-approval to formal approval
  6. We will co-ordinate the signing of your loan documents and anything else required to get your investment property ready to settle.
  7. On the nominated settlement date, we will liaise with your solicitor to make sure everything settles and you take ownership of the property
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When you are starting your search for a potential investment property, it pays to research the market. Below are a few items we recommend looking into as part of your research:

Jump to a section in the guide:

  1. Property type
  2. Property location
  3. Know your budget
  4. Local factors
  5. Consider a buyer’s agent

Units may tend to have a lower price point and a higher rental yield, but historically they have not achieved the capital growth results of townhouses or freestanding homes. The opposite is also true, with townhouses and freestanding homes tending to have a higher price point and lower rental yield, with better prospects for capital growth.

The type of property is not the only factor to consider when looking at yield or capital growth. The location of the property you are looking at can be a significant factor. Properties close to amenities like shopping centres, public transport and good school catchments may have better prospects. Demographic trends may mean that a property in a regional location may perform better as well.

Knowing how much you can borrow and buy for will help you narrow down the areas and property type you may be able to consider investing in. We will be able to provide you with detailed figures and capacity as part of our preliminary assessment process.

It is important to factor in the local area where possible when considering property investment. For instance, it may be appealing to invest in a smaller mining town because of a strong rental return, however it is important to account for the risk that the mine closing in the area would likely have a significant negative impact on your rental return and capital growth prospects. 

Likewise, forthcoming public infrastructure investment such as train lines, universities and schools can be seen as beneficial to long term potential.

Particularly if you are looking to invest interstate, it may be worth considering appointing a buyer’s agent to search for property on your behalf. They will generally charge a fee for their service, but can assist with:

  • Attending property inspections on your behalf
  • Locating properties that fit your budget
  • Local area infrastructure and demographic research
  • Leveraging their contacts to find properties ‘off market’
  • Manage the paperwork and negotiation on your behalf

Not sure if a buyer’s agent is for you? Talk to us today and we can guide you through it.

Want to work out the stamp duty or loan repayments for your investment property home loan? Use our suite of calculators below to find out more.

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How are investment property loans assessed by lenders?

There are a few differences in how lenders assess an investment home loan that can make a significant difference to your borrowing capacity:

  • Lenders will allow the proposed rental income from the new property to be added in to your income. They will typically shade this income at 70-80% of the total income to account for property expenses and vacancies
  • Lenders may have different loan-to-value (LVR) restrictions for investment properties. Some lenders do not allow you to borrow more than 90% of the property value for investment purposes. 
  • Investment home loan rates tend to be higher than owner occupied rates
  • Most lenders will allow the tax deductibility of the loan to be applied in their assessment, meaning the reduction in taxable income resulting from owning the property can potentially increase your borrowing capacity
  • Interest only periods of up to 5 years are very common for investment lending and most lenders are quite comfortable with this.

Can I buy an investment property with home loan equity?

If you have equity in another property and sufficient borrowing capacity, it is very likely you can access some of that equity to purchase an investment property. We will review this as part of your preliminary assessment and include it in your figures if so.

How many investment property loans can I have?

There is no hard limit to the number of investment property loans you can have. Instead, borrowers are generally limited by either their cash, equity or borrowing capacity which means they have reached their borrowing limit.

Are investment property loans tax-deductible?

Home loans taken out for the purpose of investing in property are generally tax deductible, with the deductibility allocated to the individual or entity based on property ownership. However, tax deductibility and negative gearing are quite complex. Simplifi Lending always recommend our clients discuss their tax affairs with a qualified accountant prior to purchasing or applying for finance.