Build Wealth Through Property — With the
Right Loan Structure.
Used right, property is one of the most reliable ways Australians build long-term wealth. But the loan structure matters as much as the property itself. We make sure you get it right from day one — right structure, right lender, set up for properties two, three, and beyond.
What Is an Investment Property Loan?
An investment loan is specifically designed for purchasing property you intend to rent out or hold for capital growth — rather than live in. While structurally similar to a standard home loan, investment loans are assessed and structured differently, with lenders considering rental income, existing debt, and your overall portfolio.
Getting the structure right from the start matters enormously. Interest-only vs principal & interest, offset accounts, loan splitting, and entity structure (personal name vs trust vs company) can all significantly affect your returns, tax position, and ability to purchase your next investment.
Discuss My Investment StrategyInvestment Loan Structures Explained
The right structure depends on your tax position and long-term strategy. Here's how the main options compare.
Interest Only (IO)
Lower monthly repayments during the IO period — maximising cash flow and keeping more capital available for your next purchase. IO periods typically run 1–5 years. Popular with investors focused on growth and portfolio expansion.
Principal & Interest (P&I)
You pay down the loan balance over time, building equity faster. Usually comes with a lower interest rate than IO. Better suited to investors focused on long-term hold and eventual payoff.
Offset Account
A transaction account linked to your loan that reduces the interest you pay. Every dollar sitting in your offset reduces your interest bill — without reducing loan flexibility. Particularly useful for investors who may want to convert their home to an investment later.
Line of Credit / Equity Access
Access the equity in your existing properties to fund deposits on new investments. A well-structured line of credit lets you move quickly on opportunities without selling down your portfolio.
What Investors Need to Know
Things That Affect Your Borrowing
- Rental income counted (typically at 70–80% by lenders)
- Negative gearing benefits (consult your accountant)
- LVR — most lenders cap investment loans at 80–90%
- Interest rates are typically slightly higher than owner-occupier
- Lender mortgage insurance may apply below 80% LVR
Common Structural Mistakes
- Wrong entity structure limiting future borrowing
- P&I when IO would better suit your cash flow
- No offset account set up from day one
- Cross-collateralising properties unnecessarily
- Not separating investment debt from personal debt
Tax and entity structure decisions should be made in consultation with your accountant or financial adviser. We handle the lending — they handle the tax.
How Much Can You Borrow for an Investment Property?
Investment property borrowing capacity is calculated differently to owner-occupier lending. Lenders typically include a portion of your rental income (usually 70–80%) to supplement your regular income — which can meaningfully increase what you can borrow.
Key factors lenders assess: your income (salary, self-employed, rental income from existing properties), existing debts and liabilities, the rental income of the property you're purchasing, your deposit and LVR position, and the number of investment properties already held.
First Investment Property
Example based on $120,000 household income
Subject to lender assessment and full serviceability check.
Using Existing Equity
Example based on an $800,000 home value
Accessing equity increases your total debt. Serviceability across both loans must be assessed carefully.
From Investment Goal to Settlement — in 5 Steps
We handle the finance and structure. You focus on finding the right property.
Free Assessment
- Review your financial position and equity
- Understand your investment goals and timeline
- Identify the best loan structure for your strategy
Lender Comparison
- Compare 60+ lenders for investment lending
- Match based on IO availability, offset features, and rates
- Present your best options with full comparison
Application
- Prepare and submit all documentation
- Coordinate rental appraisal where required
- Manage lender communication throughout
Approval & Valuation
- Lender orders property valuation
- Rental income assessed
- Formal approval issued
Settlement & Beyond
- Settlement coordinated
- Rate reviews every 6 months
- Strategic advice as your portfolio grows
Why Investors Choose Based Finance
We Understand Investment Lending
Investment loans are more complex than standard home loans. We know which lenders offer the best IO terms, offset features, and policy flexibility for investors.
60+ Lenders. All Compared.
Not all lenders treat investment lending the same way. We find the ones that suit your strategy — not just whoever has the lowest rate today.
Structure First, Rate Second
A great rate on a poorly structured loan can cost you more in the long run. We prioritise getting the structure right before shopping rates.
Portfolio Thinking
We structure your first investment loan with properties two, three, and four in mind — avoiding cross-collateralisation and structures that limit future borrowing.
Free Service — No Broker Fees
Completely free to you. We're paid by the lender after settlement — expert strategy at zero cost.
6-Monthly Rate Reviews
Post-settlement rate reviews every 6 months — keeping your investment loan competitive as your portfolio grows.
Fast Pre-Approvals
Most pre-approvals within 2–5 business days — so you can move quickly when the right property comes up.
Plain-English Guidance
We explain IO vs P&I, offset accounts, cross-collateralisation, and LVR clearly — so you make informed decisions.
We Work With Your Accountant
Investment lending and tax strategy go hand in hand. We coordinate with your accountant to make sure the loan structure aligns with your overall financial plan.
Get Your Free Investment Loan Assessment
Tell us about your investment goals and current position — we'll identify the best loan structure, how much you can borrow, and which lenders suit your strategy. No cost, no obligation.
What Can You Actually Borrow?
Tell us where you're at — we'll give you a straight answer on what you can borrow, which lenders suit your situation, and what it'll actually cost. No broker fees, ever.
Tell Us What You're After
Thanks — we'll be in touch.
Expect a call or email within one business day. We're available on weekends too.
This page contains general information only and does not constitute financial or credit advice. Investment lending, negative gearing, and entity structure decisions should be discussed with a qualified accountant or financial adviser. Eligibility depends on individual circumstances. Fees and charges may apply. Please speak with a qualified mortgage broker to discuss your situation.