An investment loan is a type of home loan that someone takes out to buy an investment property. It is a mortgage solution for those who want to buy a property and rent it out to receive income from it, but can’t afford to buy the property without a loan.

Many things about investment loans are different to how standard home loans work because they have stricter eligibility requirements. Investment loans often require a lower loan-to- valuation ratio (LVR), meaning investors need to raise a larger deposit before applying for a loan. They also have a slightly higher interest rate on average than residential home loans do. That said, the interest charged is tax deductible (this is subject to accountant’s financial advice). As we are not accountants or financial advisors.