Investment Property Loans

An investment property loan is finance used to buy or refinance a property you intend to rent out or hold for capital growth. Limitless Finance helps property investors across NSW and Australia structure investment loans the right way — comparing lenders across a wide panel, working to optimise your borrowing capacity, and keeping loans uncrossed so your portfolio stays flexible. How you structure your investment loan can be just as important as the property you buy.

How are investment loans different from owner-occupied loans?

Investment loans are not structured the same way as owner-occupied loans. Interest rates are typically slightly higher, lender serviceability policies are more complex, and the way you structure borrowing across multiple properties, ownership entities, and loan types can significantly affect your cash flow, tax position, and long-term strategy. Getting it right from the start matters. Getting it wrong can limit your ability to grow your portfolio later.

Interest-only (IO) loans

Many investors choose interest-only repayments during the investment period to improve cash flow and keep holding costs down. IO loans are assessed differently by lenders and require a clear rationale, which we document properly as part of your application.

Principal and interest (P&I) loans

Some investors prefer to reduce their loan balance over time, particularly where the property sits within a long-term wealth strategy. P&I repayments also typically attract a lower interest rate than interest-only.

Line of credit and equity release

If you already own property, you may be able to use your existing equity to fund the deposit on your next investment without touching your savings.

Standalone vs cross-collateralised structures

We generally recommend keeping investment loans uncrossed — each property stands as security for its own loan rather than being linked together. This protects your flexibility and reduces a lender’s control over your portfolio.
How lenders assess investment loan borrowing capacity
Lenders assess investment applications differently to owner-occupied ones. Rental income is typically counted at a shaded rate (usually 75–80% of gross rent), and existing investment debt is often assessed on a principal-and-interest basis even if you are only paying interest. This affects how much you can borrow. We work through the numbers carefully — across multiple lenders if needed — to find a structure that works to optimise your borrowing capacity without compromising your position.
Negative gearing and tax considerations
While we are not financial planners or tax advisers, we understand how negative gearing, depreciation, and holding costs interact with your loan structure. We work alongside your accountant or financial planner so your loan aligns with your broader investment strategy. If you do not have an adviser, we can point you in the right direction.
Frequently Asked Questions
Have Questions About Finance Or Lending?
Whether you are buying, refinancing, investing, or exploring loan options for the first time, we are here to help you understand the process and make your next step clearer.
Should I choose interest-only or principal-and-interest for an investment loan?
Interest-only improves short-term cash flow and is popular with investors holding for capital growth, while principal-and-interest reduces your loan balance over time and usually carries a lower rate. The right choice depends on your strategy, cash flow, and tax position — we model both so you can compare.
Often yes. If you have built up equity, you may be able to release it to fund the deposit and costs on an investment purchase without using your cash savings, subject to serviceability and LVR limits.
Why do brokers recommend keeping investment loans uncrossed? Uncrossed (standalone) structures keep each property as security for its own loan only. This protects your flexibility, makes it easier to sell or refinance individual properties, and reduces a lender’s control over your whole portfolio.
Many lenders look for around 10–20% plus costs, though using existing equity can reduce the cash you need upfront. We compare lenders to find an efficient structure for your situation.
What changed: “the most efficient structure” → “an efficient structure”.

Most people think their options are limited. Most people are wrong.
Book a consultation with us, to see how we can stretch the limits to suit your financial needs.