5.0 from 2 Reviews
What is an Investment Loan?
An investment loan is a home loan used to purchase a property you intend to rent out or hold as an asset, rather than live in yourself. Whether you are buying your first rental property or growing an existing portfolio, the right investment loan can make a real difference to your long-term returns. At Mprove Finance, we help clients in Perth and across Australia find investment loan options that suit their goals and financial situation.
Investment loans work differently to standard home loans. Lenders typically apply stricter criteria, and investor interest rates can vary depending on the loan structure you choose. You may have the option of a variable rate, which moves with the market, or a fixed interest rate, which locks in your repayments for a set period. Each approach has its own advantages depending on your property investment strategy, so it is worth taking the time to understand the differences before committing.
Interest Only vs Principal and Interest
One of the key decisions for any property investor is whether to go with an interest only investment loan or a principal and interest structure. With interest only repayments, you pay just the interest component each month, which can help with cash flow, particularly in the early stages of building a portfolio. With principal and interest repayments, you pay down the loan balance over time, which builds equity in the property more quickly. The right choice depends on your individual circumstances, your rental income, and your broader financial goals.
Loan to Value Ratio and Investor Deposit
Your loan to value ratio, or LVR, is the percentage of the property value you are borrowing. For investment loans, lenders generally require a lower LVR than for owner-occupied loans, meaning you may need a larger investor deposit. If your LVR is above 80 per cent, you may also be required to pay Lenders Mortgage Insurance, commonly known as LMI. This is an additional cost worth factoring into your planning. At Mprove Finance, we help you understand how your LVR affects your investment loan options and what you can do to strengthen your position.
Leveraging Equity to Grow Your Portfolio
If you already own property, you may be able to leverage equity from your existing home or investment property to fund your next purchase. Equity release allows you to use the difference between what your property is worth and what you owe on it as a deposit or contribution toward a new investment. This is a common strategy for investors looking at portfolio growth without needing to save a fresh deposit from scratch. Mprove Finance can help you understand how equity release might work for your situation.
Tax Considerations for Property Investors
Property investment in Australia comes with a range of potential tax benefits, including the ability to claim claimable expenses such as interest on your investment loan, property management fees, repairs, and body corporate fees. Historically, negative gearing benefits have allowed investors to offset rental losses against other income. However, it is important to be aware that significant changes are coming. Under legislation that received Royal Assent in June 2026, from 1 July 2027, net rental losses on residential properties acquired after 7:30pm AEST on 12 May 2026 will generally be quarantined, meaning they can only be offset against other residential rental income or future residential property capital gains, not against salary or wages. Properties already held at that time, and those under contract at that date, are grandfathered under existing rules. There are also changes to capital gains tax treatment for investment properties from 1 July 2027, with the 50 per cent CGT discount being replaced by cost base indexation and a minimum 30 per cent tax rate on real capital gains for most assets, though eligible new build properties will have an election available. Because the tax landscape is changing, Mprove Finance strongly encourages all property investors to seek advice from a qualified tax professional before making decisions.
Vacancy Rate and Rental Income
When calculating investment loan repayments and assessing your borrowing capacity, lenders will take into account the expected rental income from the property. They will also apply a vacancy rate, which accounts for periods when the property may not be tenanted. Understanding how lenders assess rental income is an important part of the investment loan application process. Mprove Finance works with you to present your financial position clearly and accurately to lenders.
APRA Lending Rules for Investors
The Australian Prudential Regulation Authority sets rules that affect how lenders assess investment loan applications. As of July 2025, lenders must apply a serviceability buffer of 3 percentage points above the product rate when assessing your ability to repay. There are also debt-to-income caps in place, which limit the proportion of new investor loans that can be written at a debt-to-income ratio of 6 times or greater. These settings are designed to manage risk across the lending system, and they can affect your investment loan amount and the loan products available to you. Mprove Finance stays up to date with these requirements so we can help you understand what they mean for your investor borrowing.
Investment Loan Refinancing
If you already have an investment loan and are wondering whether you are on the right deal, an investment loan refinance could be worth exploring. Refinancing your rental property loan may allow you to access a better interest rate, release equity, or restructure your repayments to better suit your current strategy. Mprove Finance can review your existing investment property finance arrangements and compare them against investment loan products from banks and lenders across Australia to see whether there may be a more suitable option available.
At Mprove Finance, we are passionate about helping clients in Perth and across Australia work toward financial freedom through property. Whether you are just starting out or looking to expand your portfolio, we can help you access investment loan options from a wide range of banks and lenders, compare investment property rates, and find a structure that works for your goals. Stamp duty, ongoing costs, and changing tax rules all need to be considered as part of a sound property investment strategy, and we are here to help you make sense of it all.
Step 1: Initial Conversation
We start with a no-obligation chat to understand what you are looking to achieve. Whether you are buying your first home, investing in property, or refinancing an existing loan, this is your chance to ask questions and for us to get a feel for your situation.
Step 2: Fact Find and Assessment
We take a closer look at your financial position. This includes your income, expenses, assets, and liabilities. The more we understand about your circumstances, the better placed we are to find a solution that works for you.
Step 3: Research and Strategy
Using our panel of lenders, we research the market to find loan options that suit your needs and goals. We do not just look at interest rates. We consider loan features, flexibility, and overall value to make sure the solution fits your life.
Step 4: Recommendation
We present our recommendation in plain language. No jargon, no confusion. We walk you through the options, explain the pros and cons, and answer any questions so you can make a confident, informed decision.
Step 5: Application Lodgement
Once you are happy to proceed, we prepare and lodge your application on your behalf. We handle the paperwork and liaise directly with the lender to keep things moving as smoothly as possible.
Step 6: Approval and Settlement
We keep you updated every step of the way through to formal approval and settlement. If the lender needs anything further, we manage that communication so you are not left chasing answers.
Step 7: Ongoing Support
Our relationship does not end at settlement. We check in regularly to make sure your loan is still working for you. As your circumstances change, we are here to review your finance and help you make the most of every opportunity.
At Mprove Finance, we believe the right guidance makes all the difference. Our process is designed to be clear, efficient, and centred entirely around you.
Aine is incredible. She went into bat with me to ensure the lender was understanding my complex pay structure. She went above and beyond, as initially they were not assessing my income appropriately. Her knowledge, care and relentless effort was amazing, she ensured I ended up with the best possible deal. Her follow up and attention to detail was amazing. Would recommend her to anyone needing support with their banking
Chelsea Selvidge
Aine is so friendly, knowledgeable and genuinely lovely to deal with. We're really grateful to have her on our side as we work through restructuring our home loan and potentially refinancing. We trust her advice and really appreciate the care and support she's given us. She's an absolute pleasure to work with!
Emily Jeavons
Not at all. While Mprove Finance is proudly based in Perth and serves clients across the greater Perth area, we also work with clients right across Australia. Thanks to phone, email, and video conferencing, we can provide the same high level of service whether you are in Fremantle, Brisbane, Melbourne, or anywhere else in the country. Distance is not a barrier to getting quality support with your finance needs. If you prefer to meet in person and you are local to Perth, we are happy to arrange that too. We want the experience to work for you, regardless of where you are located.
Getting started is very straightforward. You can reach out to us by phone, email, or through our website to book an initial consultation. This first conversation is all about understanding your situation, what you are hoping to achieve, and answering any questions you might have. There is no pressure and no obligation involved in having that initial chat. From there, if you decide you would like to move forward, we will outline the next steps and what we will need from you to get the process underway. Whether you are just starting to think about your options or you are ready to move quickly, Mprove Finance is here to help you take that next step with confidence.
In most cases, Mprove Finance is paid a commission by the lender once your loan settles. This means you typically do not pay us directly for our broking services. We are required by law to be transparent about how we are paid, and we will always disclose any commissions or fees upfront before you commit to anything. Our obligation is to act in your best interests, which is a legal requirement under Australian credit law. If there are any situations where a fee may apply, we will discuss this with you clearly and openly before any work begins, so there are no surprises along the way.
Having a less-than-perfect credit history does not automatically mean you are out of options. There are lenders on our panel who specialise in working with clients who have had credit challenges in the past, such as defaults, late payments, or previous bankruptcies. At Mprove Finance, we take the time to understand your full situation before exploring what may be available to you. We will always be honest with you about your options and what is realistic given your circumstances. We do not make promises about outcomes, but we do commit to doing the work to find out what is possible and presenting you with a clear picture of your choices.
When you go directly to a bank, you are only seeing what that one lender has to offer. A mortgage broker like Mprove Finance has access to a wide panel of lenders, which means we can look across multiple options to find one that suits your specific situation. We also understand how different lenders assess applications, which can be valuable when it comes to putting your application together in the strongest possible way. Beyond that, we handle the communication and paperwork on your behalf, saving you considerable time and effort. Our job is to work for you, not for the lender, and that focus on your needs is what sets the broker experience apart.
While the exact documents required can vary depending on your situation and the lender, there are some common items you will typically need to have ready. These usually include proof of identity such as a passport or driver's licence, recent payslips or tax returns if you are self-employed, bank statements, details of any existing debts or liabilities, and information about the property you are looking to purchase. At Mprove Finance, we will walk you through exactly what is needed for your specific application so you are not left guessing. Being well-prepared with your documents upfront can help avoid unnecessary delays in the process.
Mprove Finance works across a broad range of lending needs. Whether you are looking to purchase your first home, refinance an existing loan, invest in property, or access finance for a vehicle or business purpose, we can help you explore your options. We work with a wide panel of lenders including major banks, credit unions, and specialist lenders, which means we can look at solutions that suit a variety of circumstances. Every client's situation is different, so we take the time to understand what you are trying to achieve before recommending any particular direction. Our goal is to match you with a loan structure that genuinely fits your needs.
A mortgage broker acts as the go-between for you and a range of lenders. Rather than you having to approach each bank or lender individually, a broker does that legwork on your behalf. At Mprove Finance, we assess your situation, help you understand your options, and work with our panel of lenders to find a loan structure that suits your needs and goals. We handle the paperwork, communicate with lenders, and guide you through each step of the process from your initial enquiry right through to settlement. Our role is to make the whole experience as clear and straightforward as possible, so you always know where things stand.
The timeline for a home loan can vary depending on a number of factors, including the lender you go with, the complexity of your application, and how quickly all the required documents can be gathered. Generally speaking, getting pre-approval can take anywhere from a few days to a couple of weeks, while full loan approval after finding a property can take a similar amount of time. At Mprove Finance, we work to keep things moving as efficiently as possible by staying on top of your application and communicating with lenders on your behalf. We will always keep you informed so you have a clear picture of where things are at.
Pre-approval, sometimes called conditional approval, is an indication from a lender that they are willing to lend you up to a certain amount, subject to conditions being met. It is a useful step when you are searching for a property because it gives you a clearer idea of your borrowing capacity and shows sellers you are a serious buyer. Full approval, on the other hand, happens once you have found a property and the lender has assessed all the details including a valuation of the property. At Mprove Finance, we can help you understand what each stage means for your situation and what to expect as you move through the process.
At Mprove Finance, we help property investors across Perth and Australia access investment loan products from a wide range of lenders. Book an appointment with our team today and let's talk about what is possible for your property investment goals.
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