Investing in property is one of the most proven ways to build long-term wealth in Australia – but the loan you choose and how it’s structured can make a significant difference to your returns.
The 2026 Federal Budget has introduced significant changes to negative gearing and capital gains tax that take effect from 1 July 2027, making the type of property you invest in more important than ever. Whether you’re building new, buying off-the-plan, or purchasing an established property, we’ll help you understand what those changes mean for your strategy and structure your finance accordingly.
As an independent mortgage broker, we work with investors across Australia to compare options from a wide panel of lenders, structure finance to suit your investment strategy, and make the process straightforward regardless of where you’re based.
Whether you’re purchasing your first investment property, adding to an existing portfolio, or exploring how to use your current home’s equity to get started, we’ll help you understand your borrowing power, navigate lender requirements, and secure a loan that works for your goals – not just the one that’s easiest to approve.
The process.
Whether it’s your first time or you’ve done this before, familiarise yourself with the ins and outs of investment borrowing.
Your next investment starts by taking few minutes to answer a few questions right here. After that, we’ll meet to discuss your goals, in person or online.
We’ll explore your options and borrowing power together. If you already own a property, you may be able to use its equity as a deposit – which means you might need less cash upfront than you think.
Once we’ve identified the right lender for your situation, we’ll handle the paperwork – packaging the application and lodging your documents on your behalf.
With pre-approval in place, you’ll know exactly what you can spend. You’re now ready to make an offer on your investment property with confidence.
You’ve found a property and made your move. We’ll work with the lender to get your loan formally approved, manage any conditions, and keep things on track toward settlement.
We’ll coordinate with your solicitor or conveyancer and the lender to ensure everything is ready by your settlement date. Once it’s done, you’ll have a new investment property to add to your portfolio.
Investment Strategies
Let’s make the complicated, uncomplicated. An investment strategy is just the way you want to invest your money. Still not crystal clear?
Rentvesting
The freedom of renting meets the stability of owning. ‘Rentvesting’ is a popular strategy for first time investors. Basically, you’re investing while you rent. Stay in the suburb you want, while owning an investment somewhere else.
Building or buying new
From 1 July 2027, negative gearing will only be fully available on newly constructed properties – making new builds, off-the-plan apartments, and house & land packages more attractive investment options. If you’re considering building as your investment strategy, a construction loan works differently to a standard investment loan – with progress payments drawn down in stages as your build advances. We can help you structure the right finance from land purchase through to completion.
Use your home to buy another
If you already have a home, you can use its equity to top up your deposit. Don’t forget, equity is not free money. When you access your equity your loan balance will increase and so will your repayments.
Positive and negative gearing
What’s the difference between the two, and which is right for your investment property?
Positive gearing is when your total rental income is MORE than the cost of owning and managing the investment property (loan repayments, interest, maintenance, management fees, etc). Your property effectively pays for itself and then some – and any surplus is taxable income.
Negative gearing is the opposite – your rental income is LESS than your ownership costs, leaving you to cover the shortfall. Historically, investors have been able to deduct those losses against their salary or other income, reducing their overall tax bill.
This is changing. The 2026 Federal Budget announced proposed changes that from 1 July 2027, negative gearing on established residential properties purchased after 7:30pm AEST on 12 May 2026 will be restricted – losses will only be able to offset residential rental income or future capital gains, not salary or other income. Investors in new builds will retain full access to negative gearing under the current rules, as well as the existing 50% CGT discount.
Existing property owners (including those already under contract before the Budget announcement) are grandfathered under the current rules and are unaffected.
What this means in practice:
- New build / off-the-plan: negative gearing and the 50% CGT discount remain fully available – these properties are more tax-advantaged than before, relative to established stock.
- Established property (purchased after 12 May 2026): losses can only be carried forward to offset future property income or capital gains – not offset against your salary. Positive gearing becomes a more straightforward strategy for established property purchases.
- Property held before Budget night: no change – existing arrangements continue.
Getting the right structure for your situation matters more than ever. We’ll help you work through the numbers and understand which approach – and which type of property – aligns with your goals.
Loan types and features
There are a number of loan types and features that you might want to consider for your investment property loan, scroll through some of the options below to get a better understanding of what the differences are. We’re here to answer your questions when you’re ready.
FAQs about investment loans.
There are several fees that often aren’t discussed in length when buying a property. These include stamp duty, pest and building inspections and mortgage registration and transfer fees. Get in touch with me today for an up-front conversation about all the hidden fees.
Absolutely! You can use your existing home to buy your investment without needing to dive into your savings. This equity can be used for various different reasons, such as a deposit, bonds, renovations or to take out a line of credit.
The ideal loan should maximise your goals for cash-flow and capital growth. One of the first considerations for your loan is will it have a fixed or variable interest rate? Different lenders also play a part as they all offer different loan options. I can help you understand your options and find the right loan with the right features to save you both time and money.
Most lenders require a minimum deposit of 10-20% of the purchase price for an investment property, though the exact amount depends on the lender, the property type, and your overall financial position. If you have equity in an existing property, you may be able to use that as your deposit, which means you may not need to draw on savings at all. We’ll assess your situation and let you know what’s realistic before you start looking.
Yes – most lenders will take rental income into account when assessing your borrowing capacity, though the way they calculate it varies. Lenders typically apply a discount to the rental income (commonly around 80% of the expected rent) to account for potential vacancy periods and ongoing costs. We’ll help you understand how different lenders treat rental income and find one whose assessment method works in your favour.
With an interest only loan, your repayments cover just the interest on the loan for a set period – typically one to five years – meaning your loan balance doesn’t reduce during that time. This keeps repayments lower in the short term and can help with cash flow, which is why it’s a common choice for investors. Principal and interest repayments are higher, but you’re gradually paying down the loan balance and building equity in the property over time. The right choice depends on your investment strategy, tax situation, and cash flow needs – and it’s worth getting specific advice rather than following a general rule.
The Federal Budget announced in May 2026 introduces changes to negative gearing that take effect from 1 July 2027. For properties purchased after 7:30pm AEST on 12 May 2026, losses on established residential investment properties will no longer be deductible against salary or other income.
They can only offset residential rental income or future capital gains. Properties held before that time, and all newly constructed properties, are not affected by this restriction.
If you’re considering an investment property purchase, now is a good time to get advice on how these changes interact with your specific situation.
Need some help?
Not sure where to start? That’s exactly what we’re here for. Drop us a message and we will get back to you within one business day with clear, honest advice tailored to your situation.