Investment Property Interest Rates Australia (2025 Guide) — Best Investor Loan Rates & Lender Comparisons
Introduction: Why Investment Property Interest Rates Matter
If you’re purchasing or refinancing an investment property in Australia, securing the right interest rate can mean thousands of dollars in savings over the life of your loan. Rates vary between lenders and depend on factors like loan-to-value ratio (LVR), fixed vs variable rate choice, and the type of property you’re buying. In 2025, the market remains competitive, with both major banks and smaller lenders offering attractive packages for property investors.
Current Investment Property Interest Rates – August 2025
Below is a guide to typical investment property interest rates in Australia. These figures are indicative and will vary depending on your circumstances.
Lender Variable Rate Fixed Rate (3 Years)Comparison RateFees
Big Bank A6.29% p.a.6.39% p.a.6.55% p.a.$395/yr
Lender B6.15% p.a.6.25% p.a.6.35% p.a.$0
Lender C6.45% p.a.6.49% p.a.6.60% p.a.$250
Use our free Matcheroo AI Loan Comparison Tool to get accurate rates from over 40 lenders based on your exact profile.
Best Investment Property Interest Rates in Australia
The best investment property interest rates Australia offers right now are often found with smaller lenders or through mortgage brokers who can access special offers. Rates under 6.20% are available for low-risk borrowers with a strong credit history and LVR below 70%.
Factors influencing the rate you’re offered include:
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Your deposit size (lower LVR usually = lower rate)
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Loan type (principal & interest vs interest-only)
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Fixed vs variable rates
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Your credit profile and income stability
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Cheapest Home Loan Interest Rates for Investment Properties
If you’re hunting for the cheapest home loan interest rates Australia investment lenders offer, look beyond the headline rate. Many low-rate loans have high annual fees or restrictive features. The cheapest option may be a basic variable loan with no offset account — but for many investors, an offset account’s tax and cash flow benefits outweigh the small rate difference.
Variable vs Fixed Rates for Investment Properties
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Variable rates allow flexibility and benefit from future rate cuts but can rise if the RBA increases the cash rate.
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Fixed rates lock in certainty for 1–5 years but usually revert to a higher variable rate after the term ends.
Some lenders offer variable home loan rates with offset account features — ideal for investors wanting to reduce interest while keeping funds accessible.
Specialised Investor Loan Options
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No LMI Home Loans – For borrowers with deposits of 20% or more.
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Credit Impaired Home Loans – For investors rebuilding credit.
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Best Rates for Doctors & Professionals – Some lenders offer exclusive discounted rates for medical professionals.
How to Get the Best Investment Property Loan Rate
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Compare multiple lenders, not just the big four banks.
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Use a mortgage broker who can negotiate special offers.
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Consider package deals where offset accounts and fee waivers are included.
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Maintain a strong credit score and keep LVR low.
FAQs
Q: What is the average investment property interest rate in Australia?
A: As of August 2025, average variable investor rates sit between 6.20%–6.50% p.a., depending on the lender and your deposit size.
Q: Are investment property rates higher than owner-occupier rates?
A: Yes. Lenders view investment loans as higher risk, so they typically price them 0.20%–0.50% above owner-occupier loans.
Q: Can I get interest-only repayments?
A: Yes, many lenders offer interest-only terms for up to 5 years for investors, though rates are usually higher.
Get Your Personalised Investment Loan Quote
Skip the guesswork. Use Matcheroo AI to get a tailored list of rates from Australia’s top lenders in 24–48 hours — free and with no credit score impact.