Investment loan vs home loan — what's the difference?
How investment loans differ from owner-occupier home loans on rates, deposits and assessment. General information, not financial or tax advice.
7 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.
An investment loan and an owner-occupier home loan do the same basic job — but lenders treat them differently. Here's a general comparison. Not financial or tax advice.
The main differences
Interest rate: investment loans often carry a slightly higher rate than owner-occupier loans.
Deposit / LVR: lenders may want a larger deposit for investment lending.
Assessment: rental income is counted (usually discounted), and serviceability is assessed at a buffer rate.
Features: offset, redraw and interest-only are common for investors — see interest-only vs P&I.
Why it matters
The rate and structure affect both your cash-flow and your future borrowing capacity. Estimate repayments with our repayments calculator and the weekly position with the investment cash-flow calculator.
Tax is separate
Whether interest is deductible, and how negative gearing might apply, depends on your circumstances — speak to a registered tax agent. We handle the loan, not the tax.
We can help
We'll compare investment loan options across lenders and structure the loan for your goals. See investment loans or start an enquiry.
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.
Ready to talk it through?
Get tailored advice — free and with no obligation.