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Property has long been one of the most popular ways Australians look to build wealth, and for good reason. But buying an investment property is a different proposition to buying a home to live in. The lending rules are different, the tax considerations are different, and the strategy behind structuring your investment loan can have a real impact on how your portfolio performs over time. At Zella Money, we work with property investors at every stage, from those buying their first investment property to those looking to grow an existing portfolio.
What makes an investment loan different
An investment loan is a property investment loan taken out specifically to purchase a property you intend to rent out or hold for capital growth, rather than live in. Lenders treat these loans differently to owner-occupier home loans. Investor interest rates are typically a little higher, the assessment criteria can be stricter, and the way lenders count rental income when calculating your borrowing capacity varies from one institution to the next. That is why having someone in your corner who understands how different lenders approach investor borrowing matters more than most people realise.
At Zella Money, we access investment loan options from banks and lenders across Australia, which means we can compare investment loan products side by side and help you understand which structure suits your situation. Whether you are drawn to a variable rate for flexibility, a fixed interest rate for certainty, or an interest only investment loan to manage your cashflow in the early years, the right choice depends on your broader property investment strategy, not just the headline rate.
Interest only versus principal and interest
One of the most common questions we hear from property investors is whether to go interest only or principal and interest. There is no universal right answer. An interest only loan keeps your repayments lower in the short term, which can be useful if you are managing cashflow, holding multiple properties, or want to direct surplus funds elsewhere. A principal and interest loan builds equity faster and typically attracts a lower interest rate. The right structure depends on your goals, your income, your other debts, and how long you plan to hold the property.
What we can tell you is that lenders assess interest only investment loans carefully, and APRA's current prudential settings mean serviceability is assessed at a buffer of 3 percentage points above the product rate. That buffer applies whether you are on a variable interest rate or a fixed rate, and it is designed to ensure you can still service the loan if rates move. Understanding how that affects your investment loan amount before you start looking at properties is genuinely useful.
Deposits, LVR and Lenders Mortgage Insurance
Most lenders require a higher investor deposit than they would for an owner-occupier. Where an owner-occupier might borrow up to 95 per cent of a property's value, investors are more commonly looking at a maximum loan to value ratio of 80 to 90 per cent, depending on the lender and the property. Borrowing above 80 per cent as an investor will often trigger Lenders Mortgage Insurance, which is a one-off premium that protects the lender, not you, if you default. It adds to your upfront costs, so it is worth factoring into your calculations alongside stamp duty and other acquisition costs.
If you already own property, you may be able to leverage equity from your existing home or investment to fund the investor deposit on a new purchase, rather than saving fresh cash. This is one of the more powerful tools available to investors who have been in the market for a while, and it is something the team at Zella Money can walk you through in detail.
Tax considerations for property investors
Property investment comes with a range of potential tax considerations, including claimable expenses like interest on your investment loan, property management fees, repairs and maintenance, and body corporate fees where applicable. Negative gearing, where your rental income is less than your investment property costs, has historically allowed investors to offset those losses against other income. However, the tax landscape for property investors is changing.
The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 received Royal Assent on 26 June 2026. From 1 July 2027, net rental losses from residential dwellings acquired on or after 7:30pm AEST on 12 May 2026 (other than eligible new residential dwellings) will be quarantined. This means those losses can only be offset against other residential rental income or carried forward, not offset against salary or wages. Properties held before that date, and those under contract awaiting settlement at that time, remain eligible for negative gearing benefits under existing rules until sold. There are also transitional arrangements and carve-outs for eligible new builds and certain affordable housing investments.
Capital gains tax rules are also changing from 1 July 2027, with the 50 per cent CGT discount being replaced for affected assets with cost base indexation and a minimum 30 per cent tax rate on real capital gains. Eligible new build residential properties will have an election available between the two methods.
These are significant changes and the supporting ATO guidance is still being released. Zella Money can help you understand how your investment loan structure fits within your broader financial picture, but we always recommend speaking with a qualified tax adviser about your specific circumstances. We are not tax advisers, and nothing here should be taken as tax advice.
Growing your portfolio over time
For investors thinking beyond a single property, loan structure becomes even more important. How your investment loans are set up today can affect your ability to expand your property portfolio in the future. Cross-collateralisation, offset accounts, redraw facilities, and the way equity is held across properties all play a role in whether you can keep moving when the right opportunity comes along.
At Zella Money, we think about your investment loan not just as a transaction but as a building block in a longer-term strategy. If you are already holding investment property and wondering whether your current loan is still working hard for you, investment loan refinancing is worth exploring. Rates and lender policies shift, and what made sense a few years ago may not be the most suitable structure today.
Property investment loan decisions deserve proper attention, a real conversation, and someone who actually understands your situation. That is what we are here for.
Getting a home loan can feel overwhelming. It doesn't have to be. At Zella Money, we've built a process that keeps you informed, supported, and confident at every step. Here's how we work together.
Let's Have a Chat: Everything starts with a conversation. We take the time to understand where you are right now, where you want to go, and what matters most to you. No pressure, no jargon. Just an honest discussion about your situation and your goals.
We Dig Into the Detail: Once we know what you're working towards, we take a closer look at your finances. Income, expenses, savings, existing debts. We look at the full picture so we can give you advice that's actually relevant to your life, not just a generic answer.
We Research the Market: With a clear picture of your situation, we search across a wide panel of lenders to find options that genuinely suit you. We're not tied to one bank or one product. Our job is to find the right fit, not the easiest one.
We Walk You Through Your Options: We present a shortlist of suitable loan options and explain each one in plain language. Rates, fees, features, flexibility. We cover it all so you can make a decision you feel good about. No hard sell, ever.
We Handle the Application: Once you've chosen the loan that works for you, we take care of the paperwork. We prepare and lodge your application, liaise with the lender, and keep things moving. You don't need to chase anyone.
We Keep You in the Loop: From application through to approval, we stay in regular contact. You'll always know where things stand. If the lender needs anything extra, we handle it quickly and let you know what's happening and why.
Settlement and Beyond: Approved and settled? We're still here. We check in after settlement to make sure everything's running smoothly, and we stay available as your circumstances change. One loan is just the beginning.
Ready to talk to the team? We're excited to meet you! Shoot though an enquiry and we'll get back to you ASAP!
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We used Jaclyn the Senior Finance Broker to buy our first home and she was amazing! She is so knowledgeable, made us feel valued and turned our dream into a reality. Can not recommend her enough! Shout out to Sal as well the Settlements Manager who helped make settlement nice and simple.
Chris Fallon
I cannot recommend Zella highly enough! Charlotte and the wider Zella team were with us every step of the way! They truly had our backs in securing the best home loan for our family. Prompt, informative and easy to deal with! Thank you so much for all your hard work!! xx
Olivia Jolliffe
I had a great experience with Zella from start to finish. The team was friendly and made our refinance super easy. Highly recommend!
Casey Sharrock
Huge thanks to Tara and her team! Highly recommend !
Maddie B
Bought my first home through Zella and so so glad I did! Georgia was extremely helpful from the start and patient with answering all of my stupid questions. Thank you again for everything!
Christine Untario
I really appreciated working with the team. They were really efficient, no question went unanswered and they were lovely to work with. I felt in good hands!
Jane Eldershaw
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For most standard lending appointments, no. We're paid by the lender once your loan settles. In rare cases where applications are highly complex, a fee may apply, but we'll always discuss and disclose this with you upfront.
Yes. We use bank-grade security systems and are fully compliant with Australian privacy regulations. Your information is treated with the highest level of care and confidentiality.
Absolutely. We assist clients across Australia and have a thorough understanding of different state and territory regulations, grants and incentives.
We keep communication clear and simple. Your broker will be available via email and phone, and we manage documentation securely through our electronic portal. Your initial meeting can be held over the phone or by video call, depending on your preference. We're always just a message away if you need support.
To get started, we'll need documents such as identification, proof of income (like payslips or tax returns), details of your assets and liabilities, and statements for any existing loans or credit facilities. Your broker will give you a personalised checklist so you always know what's needed.
Your borrowing capacity depends on factors like your income, expenses, existing debts, credit history and the policies of individual lenders. We'll work with you to assess your position and give you a clear understanding of what's achievable.
Yes. Our brokers stay across all available incentives, including first home buyer grants, stamp duty concessions and guarantee schemes. If you're eligible, we'll help you understand how to apply and make the most of these opportunities.
Absolutely. We specialise in guiding first-home buyers through the process with tailored advice, clear communication and plenty of support along the way.
Banks offer their own products. We offer you options. As your broker, we take the time to understand your goals and financial circumstances before searching across a broad panel of lenders to find solutions that genuinely suit you. We also stay across the latest policies, grants and niche lender options that could make a real difference to your outcome.
We conduct a credit check early in the process to help us best assist you. Your score is safe with us. If you have any concerns about your credit history, please speak with your broker — we're here to support you.
Pre-approvals generally last between three and six months, depending on the lender. We'll guide you through the timeline and help you refresh your approval if your property search takes a little longer than expected.
Once your loan is formally approved, we'll guide you through the settlement process. We work closely with your solicitor or conveyancer to ensure all requirements are met and everything runs smoothly right through to settlement day.
Definitely. We understand the nuances of self-employed income and have extensive experience presenting applications for business owners in a way that resonates with lenders.
No. In addition to home loans, we also assist with commercial lending, investment loans, refinancing and asset finance. Whatever your finance goals, we're ready to support you.
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