For a complete overview of home loan interest rates across all property types, including owner-occupied and investment loans, check out our Australian Interest Rates 2025 – Home Loans, Investment Loans & RBA Forecast.
Introduction: Why Investment Property Interest Rates Matter
If you’re building wealth through property, securing the right investment property home loan rates can make or break your long-term returns. Even a 0.25% difference in interest rates can mean thousands of dollars over the life of your loan. In 2025, with the Reserve Bank of Australia adjusting the cash rate in response to inflation and housing demand, knowing where to find the best home loan rates for investment property is essential for both first-time investors and seasoned landlords.
(Internal link to Pillar: Australian Home Loan Rates – Full Guide)
Best Home Loan Rates for Investment Properties in 2025
The best home loan rates for investment property vary depending on factors like your deposit size, credit history, and whether you choose a fixed or variable rate. As of August 2025, competitive lenders are offering rates starting from [insert example rate %] for well-qualified borrowers.
LenderLoan TypeRate (p.a.)Comparison RateNotes
Bank AVariable6.15%6.40%No annual fee, offset account available
Bank BFixed (3 years)6.45%6.30%Rate lock option
Online Lender CVariable6.05%6.20%Fully online application
(Disclaimer: Rates shown are for example purposes only and may change.)
How Investment Property Loan Rates Are Calculated
Lenders price home loan rates for investment property differently from owner-occupier loans because of the perceived higher risk. The key factors influencing your rate include:
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Loan-to-Value Ratio (LVR) – A deposit of 20% or more often unlocks lower rates.
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Interest-Only vs Principal & Interest – Interest-only loans may have slightly higher rates.
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Credit Score – Strong credit history can reduce your rate by up to 0.5%.
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Market Conditions – The RBA cash rate changes flow through to lending rates.
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Fixed vs Variable Rates for Investment Property
When choosing between fixed and variable investment property home loan rates, consider:
Fixed Rates
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Lock in your repayment certainty for a set period (1–5 years).
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Protects against rate rises but won’t benefit if rates drop.
Variable Rates
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Flexibility to make extra repayments.
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Rates can rise or fall with the market.
Many investors opt for a split loan — part fixed, part variable — to get the benefits of both.
Tips for Getting the Lowest Home Loan Rate for Investment Property
If you want to beat the average home loan rate for investment property, try these strategies:
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Increase Your Deposit – Aim for 20%+ to avoid Lenders Mortgage Insurance.
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Shop Around – Compare at least 5 lenders using tools like Matcheroo AI.
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Negotiate – Use competing offers to ask for a lower rate.
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Consider Package Deals – Bundling banking products can lower rates.
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Frequently Asked Questions
What’s the average investment property home loan rate in 2025?
Average variable rates for investment properties are sitting around [insert latest average %], while fixed rates are slightly higher.
Is it harder to get an investment property loan?
Yes — lenders apply stricter serviceability tests for investors.
Should I choose interest-only repayments?
It depends on your cash flow strategy. Interest-only can maximise tax deductibility but costs more over the life of the loan.
Next Steps
Finding the right investment property home loan rate requires up-to-date comparison and strong negotiation skills. Use our free rate comparison tool to see live quotes from Australia’s top banks and non-bank lenders.
Looking for only the most competitive offers? Check out our Best Investment Home Loan Rates 2025 guide.