Best Investment Home Loan Rates in Australia (2025) — Compare Investor Rates, IO vs P&I, LVRs & Lender Policies
Introduction
Finding the best investment home loan rates in Australia can make a huge difference to your property returns in 2025. With rising interest rates and tighter lending conditions, choosing the right lender and loan structure is more important than ever. In this guide, we break down the latest fixed and variable investment property interest rates, eligibility criteria, and tips to help you secure the most competitive deal.
Current Best Investment Loan Rates in Australia (2025)
The best investment property loan rates vary between lenders, loan types, and borrower profiles. On average, in early 2025:
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Variable investment loan rates start from around 6.15% p.a. for principal & interest.
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Interest-only investment loan rates start from around 6.45% p.a..
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Fixed investment loan rates for 1–3 years range from 6.25% to 6.55% p.a.
For live comparisons, see our Australian Interest Rates 2025 pillar page.
Fixed vs Variable Investment Loan Rates
Fixed Rates
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Lock in your repayments for a set term (1–5 years)
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Protection against rate rises
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Less flexibility for extra repayments
Variable Rates
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Move up and down with the market
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Easier to refinance or make extra repayments
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May come with redraw facilities
Factors That Affect Your Investment Loan Rate
Lenders assess multiple factors when offering investment home loan rates, including:
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Loan-to-Value Ratio (LVR) – Rates improve when LVR is below 80%.
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Loan type – Interest-only loans often have higher rates.
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Property type – Some lenders have different pricing for apartments vs houses.
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Borrower profile – Credit score, income stability, and existing debt.
H2: How to Secure the Best Investment Loan Rate in 2025
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Compare lenders regularly – Even a 0.10% difference can save thousands.
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Consider package deals – Bundling offset accounts and credit cards can reduce rates.
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Negotiate – Many lenders offer discretionary discounts for strong borrowers.
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Use a broker – Access exclusive rates not advertised publicly.
Popular Lenders Offering Competitive Investment Loan Rates
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Commonwealth Bank of Australia (CBA)
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Westpac
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NAB
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ANZ
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Macquarie Bank
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ING
FAQs – Best Investment Home Loan Rates 2025
Q: What is a good investment loan rate in 2025?
A: In 2025, a competitive investment property interest rate is around 6.15%–6.35% for principal & interest.
Q: Are interest-only loans still popular for investors?
A: Yes, especially for tax and cash flow benefits, but rates are slightly higher than P&I loans.
Q: Can I refinance my investment loan to get a better rate?
A: Absolutely – refinancing is one of the most effective ways to secure a lower rate.
Internal Linking Section
Explore more guides:
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Australian Interest Rates 2025 – Home Loans, Investment Loans & RBA Forecast
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Investment Property Loan Calculator
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Fixed vs Variable Rates Explained
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For a full breakdown of the latest investment property interest rates across Australia, visit our Investment Property Home Loan Rates 2025 Guide.