Investment Property Loans Melbourne
Integrated Finance Group helps Melbourne property investors find, structure and secure investment loans. We compare a deliberately broad panel of bank, non-bank and specialist lenders, explain the trade-offs in plain English, and charge no broker fees. A director responds the same business day.
How investment loans differ from owner-occupier loans
| Owner-occupier loan | Investment loan | |
|---|---|---|
| Purpose | Buy or refinance a home you live in | Buy or refinance a property you rent out |
| Interest rate | Often lower | Often higher — varies by lender |
| Rental income | Not applicable | Lenders typically count only a portion of expected rent |
| Deposit and LVR | Some lenders allow smaller deposits | Many lenders lend up to 80% without LMI; higher LVRs depend on lender policy |
| Repayment options | Mostly principal and interest | Interest-only or principal and interest |
| Tax treatment | Speak with your accountant | Speak with your accountant |
General information only — not personal credit or financial advice. Lender policies, rates and eligibility criteria change frequently and are subject to credit approval.
How much can you borrow for an investment property?
Your borrowing power depends on income, existing debts and credit cards, living expenses, the number of dependants, and the rent the new property is expected to earn. Lenders also test your repayments at a rate above the actual loan rate, so two lenders can give very different answers for the same person.
- Start with our borrowing power calculator
- Check up-front costs with the Victorian stamp duty calculator and LMI calculator
- Read our detailed guide to borrowing capacity for investment property
- We then compare lender policies to find the one that values your situation best
Interest-only vs principal and interest
| Interest-only (IO) | Principal & interest (P&I) | |
|---|---|---|
| Repayments | Lower during the IO period | Higher, because the balance is repaid |
| Loan balance | Stays the same during the IO period | Reduces over time |
| Typical term | Often up to 5 years, then reverts to P&I | Full loan term |
| Pricing | Some lenders price IO higher | Often priced lower |
| Best suited to | Cash-flow focus or short-term strategies | Building equity and reducing debt |
The right structure depends on your goals and tax position — talk to your accountant, and read our guide to interest-only investment loans.
Using equity to buy your next investment property
If you own a home with equity, you may be able to use part of it as a deposit instead of saving cash. Structuring matters: keeping each loan secured against its own property can preserve flexibility and avoid tying your properties together (see cross-collateralisation risks). We explain your options in our guide to using home equity for an investment property.
Melbourne areas we help investors buy in
Yield and growth vary widely between Melbourne suburbs and property types. The table shows recent indicative unit figures from each of our area guides, which sit on different data dates and should be treated as a starting point only.
| Area | Median unit price | Unit rental yield | Guide |
|---|---|---|---|
| Port Melbourne | $740,000 | 4.6% | Port Melbourne mortgage broker |
| South Melbourne | $615,000 | 5.6% | South Melbourne mortgage broker |
| Melbourne CBD (3000) | $415,000 | 8.3% | Melbourne CBD mortgage broker |
| Avondale Heights | $732,500 | 4.3% | Avondale Heights mortgage broker |
We also arrange investor loans across Melbourne’s north and west — see our north-west investment property guide and the Melbourne rental market investor guide. A high yield does not automatically mean a better investment: owners corporation fees, vacancy, maintenance and land tax all affect real returns.
Ownership structures
Investment properties can be bought in your own name, jointly, in a trust or company, or through an SMSF. Each structure changes how lenders assess the loan, and each has different legal and tax consequences. We explain the lending side, and recommend you take advice from your accountant or financial adviser on the rest. Our SMSF lending page covers super fund borrowing.
Common investor mistakes we help you avoid
- Relying on a single bank’s assessment of your borrowing power
- Cross-collateralising properties without understanding the exit consequences
- Overlooking apartment lending policy — size, building and valuation — until after contracts are signed
- Ignoring the buffer required for interest rate changes and vacancy
- Choosing a loan structure for the rate alone, without thinking about future purchases
How it works
| Step | What happens | Typical timing |
|---|---|---|
| 1. Free consultation | We map your goals, income, deposit and the type of property you are considering. Nothing is lodged without your say-so. | A director responds the same business day |
| 2. Lender comparison | We compare a deliberately broad panel of bank, non-bank and specialist lenders and give you a written comparison of your options. | Once we have your documents |
| 3. Pre-approval | We prepare, lodge and manage the application so you can make offers or bid with confidence. | Most clients receive formal pre-approval within 5–7 business days of submitting documents |
| 4. Valuation to settlement | We manage the lender’s valuation and conditions through to settlement, and stay on hand afterwards. | Depends on your contract terms |
Frequently Asked Questions
- How much deposit do I need for an investment property in Melbourne?
- Many lenders lend up to 80% of the property value without Lenders Mortgage Insurance, which means a 20% deposit plus costs. Some lenders go higher with LMI, subject to policy. Using equity in a home you already own can replace some or all of the cash deposit — see our guide to using home equity for an investment property.
- How much can I borrow for an investment property?
- It depends on your income, existing debts, living expenses and the rent the property is expected to earn. Lenders typically count only a portion of expected rent and test repayments at a rate higher than the actual rate. Our borrowing power calculator gives a starting point, and we then check it against each lender’s policy.
- Should I choose an interest-only or principal-and-interest investment loan?
- Interest-only repayments are lower during the interest-only period, which can help cash flow, but the balance does not reduce and the loan usually reverts to principal-and-interest afterwards. The right choice depends on your goals and tax position, so discuss it with your accountant. Read more about interest-only investment loans.
- Can I buy an investment property with my SMSF?
- Some investors can, but SMSF property lending has specific rules and lender requirements, and it needs advice from your accountant or financial adviser as well. See our SMSF lending page and our guide to SMSF property loans in Melbourne.
- What is cross-collateralisation and should I avoid it?
- It is when one lender takes security over more than one property for the same loans. It can limit your flexibility, make refinancing or selling harder, and tie your properties together. We usually structure loans to avoid it where practical — see cross-collateralisation risks for Melbourne investors.
- Is negative gearing still available?
- Tax treatment is a matter for your accountant, and policy has been the subject of change and debate. We can explain how a loan is structured, but we do not give tax advice. Our article on negative gearing grandfathering in 2026 is general information only.
- Do you charge a fee for arranging an investment loan?
- We charge no broker fees to you. Book a free, no-obligation consultation and we’ll compare a deliberately broad panel of bank, non-bank and specialist lenders for your situation.
Ready to plan your next investment property?
Book a free, no-obligation consultation with our team. We’ll look at your position, compare lenders and explain your options in plain English — no jargon, no pressure.
Book a free consultation or call 0401 333 636
Related guides
Continue reading: interest-only investment loans, borrowing capacity for investment property, using home equity, rentvesting strategy, SMSF property loans and valuation shortfalls. Also see our refinancing, construction loans and development finance services.
