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Buying an investment property is one of the most popular ways Australians look to build wealth and work towards financial freedom. Whether you are purchasing your first rental property or growing an existing portfolio, having the right investment loan in place can make a real difference to your long-term outcomes. At First Home Loan Co, we work with clients in Mentone and right across Australia to find investment loan options that suit their goals and circumstances.
Understanding Investment Loans
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. Lenders generally treat investment property finance differently from owner-occupied lending. Investor interest rates are often slightly higher, and lenders may apply stricter conditions around the investor deposit required and how they assess your ability to repay. This is because rental properties carry a different risk profile, including the possibility of vacancy periods where no rental income is coming in.
At First Home Loan Co, we help you access investment loan options from banks and lenders across Australia, so you are not limited to just one or two products. Our role is to compare investment loan products on your behalf and explain the differences clearly, so you can make an informed decision.
Variable Rate vs Fixed Rate
One of the first choices you will face with an investment loan is whether to go with a variable interest rate or a fixed interest rate. A variable rate moves in line with market conditions and gives you more flexibility, such as the ability to make extra repayments or access a redraw facility. A fixed rate locks in your investment loan interest rate for a set period, which can help with budgeting and cash flow planning.
Some investors choose to split their investment loan amount between variable and fixed portions. This approach can offer a balance between certainty and flexibility. We can walk you through the investment loan features of each option and help you think through what suits your property investment strategy.
Interest Only vs Principal and Interest
Another key decision is whether to repay your investment loan on an interest only basis or a principal and interest basis. With interest only investment loans, your repayments cover only the interest charged each month, which keeps repayments lower in the short term. This can be useful for investors focused on cash flow or those looking to maximise tax deductions, since interest on borrowings used to produce rental income may be deductible. You should speak with a qualified tax adviser about your specific situation, as the rules around claimable expenses and negative gearing benefits have changed significantly.
Under the Treasury Laws Amendment (Tax Reform No. 1) Act 2026, which received Royal Assent on 26 June 2026, new rules around negative gearing will take effect from 1 July 2027. Properties acquired on or after 7:30pm AEST on 12 May 2026 that are not eligible new builds will have their net rental losses quarantined, meaning those losses can no longer be offset against salary or other non-residential income. Properties held before that time are grandfathered under existing rules. Given these changes, it is more important than ever to get advice from a licensed tax specialist before making investment decisions.
Principal and interest repayments reduce your loan balance over time, which builds equity in the property and reduces the total interest paid over the life of the loan. Calculating investment loan repayments under both structures can help you understand the cash flow impact. You can use our Mortgage Repayment Calculator to get a clearer picture of what your repayments might look like.
Loan to Value Ratio and Lenders Mortgage Insurance
Your loan to value ratio (LVR) is the amount you are borrowing compared to the value of the property. Most lenders prefer an LVR of 80 per cent or below for investment loans. If your LVR is above 80 per cent, you may be required to pay Lenders Mortgage Insurance (LMI), which protects the lender rather than you. LMI can add a significant cost to your investment loan amount, so many investors aim to have a deposit of at least 20 per cent.
If you already own property, you may be able to leverage equity from your existing home or investment portfolio to fund your investor deposit. This is known as equity release, and it can be a powerful tool for portfolio growth without needing to save a separate cash deposit. We can help you understand how much equity you may be able to access and how this fits into your broader investor borrowing strategy.
Working With First Home Loan Co
At First Home Loan Co, we take the time to understand your situation before recommending any investment loan products. We look at your income, existing debts, the potential rental income from the property, and your long-term goals. We also factor in current APRA lending guidelines, including the 3 percentage point serviceability buffer applied above the product rate, and the debt-to-income caps that have been in place since February 2026.
Whether you are looking at a property investment loan for a house, unit, or apartment, or you are considering an investment loan refinance to get a better deal on an existing rental property loan, we are here to help. We can also explain considerations like stamp duty, body corporate fees, and how vacancy rate in a particular area might affect your rental income projections. These are all factors that can influence which investment loan options make sense for your situation.
If you are ready to explore your options or want to understand your borrowing capacity before committing to anything, reach out to the team at First Home Loan Co. We work with investors in Mentone and across Australia to find property investment loan solutions that fit.
Step 1: Get in Touch
Everything starts with a conversation. Reach out to us by phone, email, or through our website. We will set up a time to chat that suits you, whether you are in Mentone or anywhere else in Australia.
Step 2: Understand Your Goals
We take the time to learn about your situation. What kind of home are you looking for? What is your budget? Do you have a deposit saved? There are no silly questions here. The more we know, the better we can help.
Step 3: Review Your Finances
We look at your income, expenses, savings, and credit history. This gives us a clear picture of your borrowing power and helps us find the right loan options for you.
Step 4: Compare Loan Options
We search across a wide panel of lenders to find loans that suit your needs and budget. We explain each option in plain language so you can make a confident, informed decision.
Step 5: Submit Your Application
Once you have chosen a loan, we handle the paperwork. We prepare and lodge your application on your behalf, making sure everything is accurate and complete to give you the best chance of approval.
Step 6: Approval and Settlement
We stay in close contact with your lender throughout the approval process. We keep you updated every step of the way and work with your conveyancer or solicitor to make sure settlement goes smoothly.
Step 7: Ongoing Support
Our relationship does not end at settlement. We check in with you regularly to make sure your loan is still working for you. As your life changes, we are here to help you review your options and make the most of your mortgage.
Maurizio has been our mortgage broker for years now, and he's made every loan feel easy - a simple refinance, a new home build, subsequent refinances and loan splits, you name it. His communication is spot on, his attention to detail is excellent, and he's always quick to respond. On top of all that, it also helps that he's consistently found us the sharpest rates! We'll be sticking with him for the foreseeable future. Highly recommended.
Jethro Kairys
Maurizio came to us highly recommended and we were really happy with the service Maurizio provided when applying for our first home loan. He made the whole process clear and easy to understand, taking the time to explain the more complex parts along the way. Maurizio and his team were prompt, professional, and kept us informed at every stage. We felt well supported throughout and were so happy with the experience that we have also used Maurizio’s services to refinance our loan. Would 100% recommend to First Home buyers or anyone that needs mortgage advice.
Jillian Wood
Maurizio was fantastic to deal with. He made the whole process seamless and was always willing to answer our questions and help where possible. In what could have been an extremely stressful process, Maurizio made it as easy and stress free as possible. I would recommend to anyone.
Liam Fisher
Before I contacted First Home Loan Co I was unsure of my position to purchase a property. After the first meeting with Maurizio he was able to explain everything and provide a clear pathway to becoming a home owner. I have successfully purchased a property now and Maurizio was guiding me through each step, answering any questions I had and going out of his way to assist.
Frank b
Having a smaller deposit does not necessarily mean you cannot apply for a home loan, though it can affect the options available to you. In Australia, most lenders prefer a deposit of at least 20 per cent of the property value to avoid Lenders Mortgage Insurance (LMI). However, there are loan options available for borrowers with a smaller deposit, and some government schemes may also help eligible buyers. At First Home Loan Co, we will take the time to understand your current savings position and explain what options may be available based on your circumstances. We will also help you understand any additional costs that may apply so you can plan accordingly.
Once your home loan has been approved and settlement has taken place, our relationship with you does not simply end there. At First Home Loan Co, we believe in building long-term relationships with our clients. We are happy to check in with you over time to make sure your loan is still working well for your situation as your life and circumstances change. Things like changes to your income, family situation, or property goals can all affect whether your current loan remains the right fit for you. We are always here to answer questions and provide support as you continue your journey as a homeowner. You are not just a transaction to us, you are a valued client.
While the exact documents required can vary between lenders, there are some common items that most lenders will ask for. These typically include proof of identity such as a passport or driver's licence, proof of income such as recent payslips or tax returns, bank statements showing your savings and expenses, and details of any existing debts or financial commitments. If you are self-employed, you may need to provide additional documentation such as business financial statements. At First Home Loan Co, we will give you a clear checklist of what you need to gather before we submit your application, so you feel prepared and confident going into the process.
When you go directly to your bank, you only see what that one lender has to offer. A mortgage broker like First Home Loan Co has access to a wide range of lenders and loan products, which means we can look at more options on your behalf. Your bank will always recommend their own products, whereas we work for you. We take the time to understand your personal circumstances and then look across multiple lenders to find options that may be a good fit. This broader view can be really valuable, especially for first home buyers who may not know what to look for or what questions to ask.
Absolutely, helping first home buyers is at the heart of what we do at First Home Loan Co. Buying your first home is one of the biggest financial decisions you will ever make, and it can feel overwhelming when you are not sure where to start. We are here to walk you through the process from beginning to end. We will explain how home loans work, help you understand what you may be able to borrow, and look at loan options that suit your situation. We can also help you understand government schemes and grants that may be available to first home buyers in Australia, such as the First Home Owner Grant.
While we are proud to serve clients in Mentone and the surrounding local area, First Home Loan Co works with clients right across Australia. Whether you are based in Melbourne, regional Victoria, or anywhere else in the country, we are set up to help you. We can meet with local clients in person and connect with clients in other locations via phone or video call, making it convenient no matter where you are. Our goal is to provide the same level of care and attention to every client, regardless of where they live. If you are looking for support with your first home loan, we would love to hear from you no matter where you are based.
In most cases, our service comes at no direct cost to you as the borrower. Mortgage brokers in Australia are typically paid a commission by the lender once your home loan settles. This means you can access our knowledge and support without paying out of pocket for it. We are always transparent about how we are paid, and we will explain this to you clearly before we get started. If there are any situations where a fee may apply, we will let you know upfront so there are no surprises. Our goal is to make sure you feel informed and comfortable throughout the entire process.
A mortgage broker acts as the go-between for you and a range of lenders, including banks, credit unions, and other financial institutions. Rather than you having to contact each lender individually, a mortgage broker does that legwork on your behalf. At First Home Loan Co, we take the time to understand your situation, your goals, and your budget before we start looking at loan options that may suit your needs. We handle the paperwork, communicate with lenders, and keep you informed every step of the way. Our role is to make the home loan process feel more manageable, so you can focus on the exciting part of buying your first home.
The timeline for a home loan application can vary depending on a number of factors, including the lender you apply with, how quickly documents are provided, and the complexity of your financial situation. In general, once you have submitted all the required documents, lenders can take anywhere from a few days to a few weeks to assess your application. At First Home Loan Co, we work to keep things moving by staying in regular contact with lenders and making sure your application is as complete and accurate as possible from the start. We will keep you updated throughout the process so you always know where things stand and what to expect next.
The First Home Owner Grant (FHOG) is a government initiative designed to help eligible first home buyers get into the property market. The grant amount and eligibility criteria can vary depending on which state or territory you are buying in, so it is important to understand the rules that apply to your specific situation. At First Home Loan Co, we can help you understand whether you may be eligible and walk you through the application process. We work with clients across Australia, including those based in Mentone and surrounding areas, so we are familiar with the requirements that apply in different parts of the country. It is always worth looking into what support may be available to you.
The team at First Home Loan Co works with property investors in Mentone and across Australia to find investment loan products that suit their goals. Book an appointment today and let us help you take the next step towards building wealth through property.
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