Investment Property Loans in Sydney

Most lenders accept a 10% deposit for investment purchases, with LMI applying below 20%.

A 20% deposit avoids LMI and gives you access to more lenders and sharper rates.

For example, on a $900,000 investment property:

20% deposit = $180,000 

Stamp duty ≈ $36,000 (no first-home buyer concessions apply) 

If you already own a property, you may be able to use your existing equity to cover the deposit and costs — without needing to sell.

Rentvesting means renting in your preferred area while buying an investment property in a more affordable location. It’s increasingly common in Sydney as inner-city prices rise.

The case for it:

Enter the market sooner 

Maintain lifestyle flexibility 

Interest on the investment loan is generally tax-deductible 

The trade-offs:

No access to most first-home buyer grants or stamp duty concessions 

You continue paying rent where you live 

Capital gains tax applies when you sell the investment property 

The right approach depends on your goals and timeframe. We model both scenarios — buying to live in vs rentvesting — over five and ten years so you can compare the outcomes clearly.

Interest-only (IO) repayments cover just the interest — the loan balance doesn’t reduce. This keeps monthly repayments lower, which can suit investors focused on cashflow and capital growth.

Principal & interest (P&I) repayments reduce the loan balance over time, building equity faster but with higher monthly repayments.

Most lenders limit interest-only periods to five years, after which the loan reverts to P&I. Rates during the IO period are often slightly higher.

The right structure depends on your broader strategy. Many investors use interest-only to maximise tax deductibility and direct surplus cash toward paying down non-deductible debt (like their home loan). This is best decided alongside your accountant.

Interest on an investment loan is generally tax-deductible, along with most ongoing costs — council rates, insurance, repairs, property management fees, and depreciation.

If these deductions exceed the rental income, the property is negatively geared, and the loss can be offset against your other taxable income.

Depreciation is often the largest non-cash deduction, particularly on newer properties. It’s claimed on the building and on items like carpets, blinds, and appliances. A quantity surveyor’s depreciation schedule is usually worthwhile.

Tax advice sits with your accountant, but we work alongside them to structure the loan correctly — including decisions around interest-only vs P&I, ownership structure, and keeping investment and home loan debt separate.

Most brokers can arrange a single investment loan. Fewer can structure a portfolio so it remains flexible, tax-aware, and serviceable as you add more properties.

We’ve done that work many times for Sydney investors — and we stay involved as you grow.

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Yes. Most lenders allow you to borrow up to 80% of your home’s value without LMI. The usable equity can then fund the deposit and costs for an investment property.

We usually recommend keeping the loans separate for flexibility.

It depends on what you're buying and when. Negative gearing remains genuinely useful for many investors, but it's a growth-driven strategy, not a tax-refund strategy — the tax benefit should support a property you'd want regardless, not justify a purchase on its own.

With the 2026 budget changes affecting established properties bought after 12 May 2026, the calculation has shifted for some buyers, particularly toward new builds. We talk through this alongside your accountant before you commit to a structure or a purchase.

Not necessarily.

Using multiple lenders can give you more flexibility to refinance, sell, or restructure one property without affecting the others. Same-lender discounts are often small and may not outweigh the loss of control.

Change to:

For residential investment loans, there are usually no broker fees to claim — our service is typically free.

If a fee applies, given the additional work involved, for example, if you're looking to buy multiple investment properties in the next 24 months, then a fee may apply and yes, it may be tax-deductible. Confirm this with your accountant.

There’s no legal limit. The real limit is borrowing capacity.

That depends on your income, rental income, existing debts, and each lender’s assessment rules. We model this each time you consider a new purchase.

Both can work.

Houses often offer stronger long-term capital growth because of the land component. Units can offer a lower entry price and stronger rental yield.

The right choice depends on your budget, suburb, body corporate fees, and time horizon. Further, what is in your best interest depends on a diversity of contrasting factors that you can explore with us during your initial finance and property conversation.