A beginner's guide to financing your first investment property — deposit, loan structure, costs and cash-flow. General information, not financial or tax advice.
10 June 2026 · By Foundation Finance · Last reviewed 10 June 2026
What we can — and can’t — advise on
Foundation Finance operates as a credit representative under an Australian Credit Licence. We can advise on the credit product — the loan itself, how it’s structured, and which lenders suit your situation. Whether a self-managed super fund, trust or company structure is right for you is financial product, tax and legal advice, which sits with your licensed financial adviser, accountant or solicitor. This page covers the credit side only.
Buying your first investment property is a big step. This guide covers the finance side in plain English — deposit, loan structure, costs and cash-flow. It's general information about the credit side, not financial or tax advice; speak to your accountant about tax.
How much deposit?
For an investment loan you'll usually want around a 20% deposit to avoid Lenders Mortgage Insurance, though smaller deposits are possible. Lenders also factor in costs (stamp duty, legal, inspections). Use our deposit and borrowing power calculators to plan.
Loan structure: interest-only vs P&I
Investors often consider interest-only for cash-flow reasons, while principal & interest pays the loan down. Each has trade-offs — see interest-only vs P&I. The right choice depends on your goals (and, for tax, your accountant).
What's an investment loan vs a home loan?
Investment loans are assessed a little differently and can carry slightly higher rates — more in investment loan vs home loan.
Will it cost me each week?
Many investment properties are negatively geared early on — the costs exceed the rent. Estimate the pre-tax weekly position with our investment cash-flow calculator. Whether any tax effect helps you depends on your circumstances — that's a question for a registered tax agent.
Rentvesting
Some first-timers rentvest — rent where they want to live and invest where the numbers work. See rentvesting.
Next step
We'll work out your borrowing power and structure the loan for a first investment — get started or read about investment loans. Remember: borrowing to invest magnifies gains and losses, and returns aren't guaranteed.
Who handles what
Getting it right usually means a small team. Here’s who does which part — we’ll gladly work alongside your other professionals.
Us (Foundation Finance)
The loan — structure, features, lender selection, serviceability and the application.
Licensed financial adviser (AFSL)
Whether an SMSF or investing via super suits you, and any financial-product advice.
Registered tax agent / accountant
Your tax position — negative gearing, deductions and CGT for your circumstances.
Solicitor
Legal structures, trust deeds, contracts and asset protection.
Quantity surveyor
An ATO-compliant tax depreciation schedule for your property.
General advice warning: The information on this page is general in nature and factual only. It does not take into account your objectives, financial situation or needs, and is not financial product, tax, credit or legal advice. Tax, superannuation and SMSF outcomes depend on your circumstances — speak to a registered tax agent and a licensed financial adviser before acting. Any estimates or calculator results are indicative only and not an offer of credit, a quote, or a guarantee of approval or savings.
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