best investment home loan rates explained for smart property buyers

What these rates really mean

When lenders price an investment loan, they balance risk, funding costs, and competition. That is why investor rates often sit a touch above owner‑occupier offers. You will see variable options that track market moves and fixed terms that lock certainty, plus interest‑only periods aimed at cash flow. The headline percent is just the start.

How to compare beyond the headline

Look at the comparison rate, fees, and features like offset or redraw. Check loan‑to‑value ratio tiers; crossing a threshold can shift pricing materially. Consider whether a split between fixed and variable gives you flexibility without losing stability.

Key levers that move your rate

Rates respond to the central cash rate, lenders’ wholesale funding, rental market outlook, and your profile: deposit size, credit history, and documented income. Sharp borrowers prepare early and negotiate.

• Request written rate quotes and ask for a discount for loyalty or strong LVR.
• Stress‑test repayments at +2–3% to protect cash flow.
• Compare package fees against benefits you will actually use.
• Reprice annually; inertia often costs more than switching.