SOLUTIONS / INVESTMENT LENDING
Investment Loans For Professionals
Investment lending is not just about buying the next property. The right structure can affect borrowing capacity, cash flow, equity use and future portfolio growth.
Key Takeaway
Investment lending requires careful structuring — not just a competitive rate. Loan purpose, equity use, interest-only options, rental income treatment and future borrowing capacity all need to be considered before purchasing.
This Page Is For
✓ Professionals with equity who want to purchase an investment property
✓ Investors reviewing loan structure before adding to an existing portfolio
✓ Borrowers considering equity release as a deposit for investment
✓ Anyone wanting to understand how an investment loan affects future borrowing capacity
What To Prepare Before Speaking With Us
→ Current owner-occupied loan balance and estimated property value
→ Details of any existing investment loans
→ Rental income if any existing investment properties
→ Most recent payslips or tax returns
→ Target investment property price and location
Investment Lending For Professionals
Professionals often have strong income potential, but investment lending still needs careful structure. Lender choice, loan purpose, repayment type, existing debts, property type, tax position and future borrowing capacity can all affect the strategy.
Why Loan Structure Matters
✓ Owner-occupied vs investment loan splits
✓ Interest-only vs principal and interest repayments
✓ Offset accounts on correct loan purpose
✓ Avoiding mixed-purpose loans that complicate future lending
✓ Equity release — structure and loan purpose clarity
✓ Future servicing impact from new investment debt
✓ Lender exposure limits per lender or portfolio
✓ Investment cash flow and rental income assessment
Equity Release For Investment Deposits
Some investors use equity in an existing property to fund the deposit and costs for an investment purchase. This needs to be structured carefully so the loan purpose is clear and future borrowing capacity is considered.
Refinance Review
Assess your equity position and loan structure options
Interest-Only vs Principal & Interest
Interest-Only
May assist investment cash flow in the short term. Does not reduce the principal balance. Can cost more over the life of the loan. Subject to lender policy, income assessment and servicing.
Principal & Interest
Reduces the loan balance over time. May have higher monthly repayments. Often preferred by lenders for investment loans and may affect servicing calculations.
Borrowing Capacity For Investors
Investment borrowing capacity depends on more than just income. Each of the following factors may affect how much a lender will approve.
Rental Income Shading
Many lenders use only a portion of rental income — commonly 70–80% — when assessing serviceability. This reduces the income credit from the investment.
Existing Debts
Credit cards, personal loans, existing mortgages and HECS are all factored into serviceability assessment.
Family Expenses
Lenders use declared expenses and household expense benchmarks when calculating borrowing capacity.
HECS Debt
HECS repayments are included in serviceability calculations and can reduce available borrowing capacity.
Interest Rate Buffer
Lenders typically add a buffer above the actual loan rate when assessing whether you can service the loan.
Credit Card Limits
Credit card limits — not just balances — are generally counted as a liability in servicing calculations.
Existing Investment Loans
Each additional investment loan adds to assessed liabilities and can reduce capacity for further lending.
Lender Exposure Limits
Some lenders apply maximum portfolio lending limits that may restrict further investment lending with that lender.
Investment Lending By Profession
Different professions have different income structures that affect investment borrowing capacity and lender options.
🏥 Nurses
Nurses may need overtime, shift loading and part-time income assessed correctly for investment borrowing.
⚕️ Doctors
Doctors may require investment lending that considers medical income, specialist policies and future borrowing capacity.
🦷 Dentists
Dentists may need investment loans structured around practice income, business debts and personal borrowing capacity.
⚖️ Lawyers
Lawyers may need lenders that assess bonus, partnership income and long-term investment goals.
📊 Accountants
Accountants may need structuring around PAYG, trust income, company income and investment debt.
Useful Calculators
Borrowing Power Calculator
Estimate your investment borrowing capacity including existing debts and rental income.
Repayment Calculator
Estimate monthly repayments for interest-only or principal and interest investment loans.
Refinance Savings Calculator
Estimate potential savings from refinancing your current loan before investing.
Free Guide
Download The Professional Lending Guide
Understand how lenders may assess income, equity, investment lending and borrowing capacity for professionals.
Frequently Asked Questions
Can I use equity to buy an investment property?
Some borrowers use equity to fund an investment deposit and costs. This depends on valuation, lender policy and serviceability.
Is interest-only better for investment loans?
Interest-only may suit some investors, but it depends on cash flow, tax position, strategy and lender policy.
Do lenders use all rental income?
Many lenders shade rental income rather than using 100% of it for servicing.
Can professionals borrow more for investment properties?
Borrowing capacity depends on income, debts, expenses, rental income, lender policy and assessment rate.
Should I refinance before buying an investment property?
A refinance review may help assess equity and structure, but it depends on your current loan and goals.
Last reviewed: June 2026. Last reviewed: June 2026. Government scheme eligibility rules, income caps and property value thresholds vary by state and change regularly. Confirm current details at housing.gov.au or with the relevant state authority.
Frequently Asked Questions
How much deposit do first home buyers need?
Deposit requirements vary by lender, property type, loan size and whether LMI or a waiver applies.
Does HECS affect borrowing power?
Yes. HECS can reduce borrowing capacity because lenders generally include compulsory repayments in serviceability.
Can first home buyers avoid LMI?
Some eligible professionals may qualify for LMI waiver options, subject to lender policy and assessment.
Should I get pre-approved before looking?
Pre-approval can help clarify budget and lender options before making offers. Note that pre-approval is conditional and not a guarantee of final approval.
What costs should first home buyers budget for?
Deposit, stamp duty, legal costs, inspections, lender fees, moving costs and potential LMI should all be considered.
Last reviewed: June 2026. Last reviewed: June 2026. Government scheme eligibility rules, income caps and property value thresholds vary by state and change regularly. Confirm current details at housing.gov.au or with the relevant state authority.
Planning Your Next Investment Property?
Book an investment lending review and we’ll assess your borrowing capacity, equity, loan structure and lender options.
General information only. Investment lending eligibility, borrowing capacity, rates and outcomes vary by lender and are subject to assessment. This is not financial or tax advice.