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Your guide to buying an investment property

Whether you’re a first-time investor or growing your portfolio, the Investor Hub has heaps of helpful information so you can buy an investment property with confidence.

Handy articles

A guide to capital growth

Wondering what capital growth is, or how to identify it? This guide explains it’s definition and explain how you can find growth opportunities.

Read more
A guide to home equity

Wondering what home equity is, or how to access it? This guide explains it’s definition and explain how you can find further capital for other investments.

Read more
What is negative gearing

Learn about negative gearing and its financial impact with Great Southern Bank's blog. Discover how it works and how it can benefit you.

Read more
How much deposit is needed for an investment property?

Looking to invest in property? Learn the deposit requirements for investment properties and how to prepare for this important expense.

Read more

FAQS

Common questions from property investors

When it comes to property investment, there are no silly questions. Here are some our team are regularly asked.

Investing in property

How does an investment property home loan differ from an owner occupied home loan?

The main difference is the loan’s purpose. A standard home loan, sometimes referred to as an ’owner occupied’ home loan, is used when you have the intention of living in the property. An investment home loan is chosen when you’ll rent the property out. Home loans for investment property purchases generally have a higher interest rate than a standard home loan and your bank may require you to have a larger deposit.

Can I buy an investment property with no deposit?

No matter what kind of home loan you’re after, you’ll need to make some kind of contribution. This might be a cash deposit or equity you may have in other properties. The amount you need to contribute can vary so talk to a Home Loan Specialist or broker for details. Your bank will also look at your ability to repay the investment loan.

Can I access the equity in my current property?

This is often the case. However, to avoid paying Lenders Mortgage Insurance (LMI) on your current property, make sure your home loan balance stays equal to, or below 80% Loan to Valuation Ratio (LVR). For example, someone with a home worth $600,000 with a home loan balance of $300,000 has a LVR of 50%. The owner could borrow an extra $180,000 to put towards an investment property, stay under 80% LVR and avoid paying LMI.

What are the upfront costs when investing in property?

Apart from your deposit, there are some upfront costs to prepare for. These include:

It’s also smart to set some money aside for emergency repairs or maintenance to your investment property.

Check out our Upfront costs calculator and get specific with your sums.

What is Rentvesting?

Rentvesting is a term used to describe buying an investment property in an area that's more affordable while renting in an area suited to your lifestyle. It’s a great way for first time buyers to enter the property market.

What is rental yield?

Rental yield refers to the amount of money you make on an investment property versus its value. For example, an annual rental income of $29,200 ($561 p/week), against a property value of $600,000 yields 4.86% p.a.

What is negative gearing for an investment property?

Negative gearing is where the costs associated with the investment (such as home loan interest expense) exceeds the income earned in rental income. These expenses can be offset against your taxable income which reduces the tax you may have to pay. Most banks take both negative and positive gearing into account when calculating the amount you’re able to borrow.

What is capital growth?

Capital growth refers to the increase in market value of your property over time.

What home loan calculators can I use?

We have calculators to help you with borrowing power, repayments, refinancing, loan comparisons, stamp duty and other upfront costs. Check them out here.

Ready to apply for an investment home loan

Which is the best investment home loan for me?

Most banks offer several investment loan options including fixed rate loans, variable rate loans and split loans (a combination of fixed and variable). You can also choose to pay off the principal and interest or interest only. To understand what investment loan works best for you, speak to your Home Loan Specialist or broker.

What does ‘subject to finance’ mean?

When someone agrees to buy a property, a ‘subject to finance’ condition protects them in case they can’t get the necessary finance.

How can an offset account help?

A mortgage offset account uses the balance of a linked everyday account to reduce the balance of your home loan you’re charged interest on. If you have some savings, adding these to an offset account could help you pay off your home loan sooner.

What is an interest only home loan?

An interest only home loan is a loan where you only pay the interest accrued on your home loan. By comparison, a standard home loan is principal and interest (P&I) where repayments pay back a portion of the original loan amount and the interest accrued.

Investors sometimes choose an interest only home loan to maximise cashflow as repayments are typically lower than P&I home loan repayments.

Most banks have a maximum interest only period, after which you can extend the interest only period (subject to assessment), or revert to P&I automatically.

Interest only is also popular among investors as they benefit from capital growth despite not paying back the original loan amount.

Principal and interest is a popular option if you want to increase the equity you have in your property.

How do I apply for an investment home loan?

You can apply for a Great Southern Bank investment home loan online, by speaking to one of our friendly Home Loan Specialists over the phone or at your nearest branch, or through a home loan broker.

Investment home loan settlement

How do I pay a deposit on an investment property?

Your deposit is withdrawn from your chosen bank account on settlement day, along with any other fees and costs associated with buying your investment property. Your solicitor will confirm the total amount of costs and contribution required.

It’s a good idea to make sure the funds are in your account a few days in advance to avoid delays on settlement day.

What are my ongoing investment property costs?

Ongoing costs can include insurance, property maintenance, rates, loan repayments, body corporate fees and property management fees.

Do I need Landlord insurance?

Landlord insurance can cover loss of rent and damage by tenants so it’s worth considering.

How can I pay my investment loan off faster?

There are many clever ways to pay off your investor loan faster. One is using our smart tool, The Boost1. Simply set an amount between $0.01 and $5 to automatically transfer to your home loan account every time you use your Great Southern Bank Debit Card.

Every little bit adds up and the best part is you’ll be paying off your home loan faster without even realising it. For more information check out The Boost1 here.

Refinancing an investment home loan

Should I refinance my investment property home loan?

If you’re not happy with your current investment home loan, refinancing could help lower repayments with a better rate, reduce fees and and improve serviceability. Remember, there are likely to be costs associated with refinancing that you’ll need to consider.

What are the upfront costs of refinancing my investment property home loan?

When refinancing, it’s important to consider the costs involved. Discharge fees, early payout fees and Lenders Mortgage Insurance (if your loan is more than 80% of the property value) are the main ones to be aware of.

Compare home loans

Basic Variable Home Loan
Discounted rates from
6.34
%
p.a.
Comparison rate^
6.40
%
p.a.
All the features you need and nothing you don't.
Investor, principal & interest, LVR 70% or less. Includes discount on new and additional lending. Min. loan amount applies.2,3,4
Offset Variable Home Loan
Discounted rates from
6.35
%
p.a.
Comparison rate^
6.41
%
p.a.
100% offset home loan that makes saving on interest easy.8
Investor, principal & interest, LVR 70% or less. Includes discount on new and additional lending. Min. loan amount applies.2,3,4
Fixed Rate Home Loan
2 year fixed rate
6.59
%
p.a.
Comparison rate^
8.10
%
p.a.
A competitive fixed rate plus the flexibility to pay up to $30,000 in extra repayments during the fixed term.9
2 year fixed rate, Investor, principal & interest.5,6
HANDY TOOLS

Home loan calculators

Find out much you can borrow, calculate your upfront costs and estimate your stamp duty in just a few clicks.

View all calculators

Borrowing power calculator
Upfront costs calculator
Stamp duty calculator

Speak to a Home Loan Specialist

Have a question? Our experienced Home Loan Specialists are here to help.

  • Available 6 days a week
  • Assistance with your home loan
  • You’ll have your own home loan specialist to guide you through the home buying process.

Did you know we’re customer-owned

That means no shareholders. Our profits go back into new products and clever ways to help you manage your money.

Our home loan have won awards, but our true passion lies in our purpose. Helping more Australians own their own home - and we’ve been doing so for over 75 years!

“Wayne was an absolute champ during the whole process! Always letting me know what I needed to do and all while answering all the dumb questions I had.”
Connect with a Home Loan Specialist
We are here to help.

Speak to one of our Home Loan Specialists via live online chat.

Fill out our online enquiry form and one of our Home Loan Specialists will get back to you to start the process.

Mon - Fri: 8:00am - 8:00pm (AEDT)
Sat: 8:00am - 4:00pm (AEDT)

Important information

Rates are current as at 29 November 2023 and subject to change.

Great Southern Bank, a business name of Credit Union Australia Ltd ABN 44 087 650 959, AFSL and Australian Credit Licence 238317. Lending criteria, limits, conditions, and fees apply. Applications are subject to credit approval.

1 The Boost is not available on business accounts.

2 Discounts off the Basic Variable Reference Rate are available to (a) new home loans with a minimum application amount of $100,000; or (b) switching or restructuring of the home loan you already have with us when it includes new borrowing of at least $10,000; and the application is unconditionally approved on or after 29 November 2023. Published interest rates are inclusive of any discounts off the respective Reference Rates. Interest rates and discounts vary based on the loan purpose (owner occupier or investor), repayment type (principal and interest, interest only, construction) and Loan to Value Ratio (LVR). Maximum LVR applies and includes Lenders' Mortgage Insurance and Great Southern Bank loan setup fees where applicable.

3 Great Southern Bank may withdraw or amend this offer at any time without notice. A change in your loan purpose, your repayment type or your loan product will permanently end your entitlement to the discount.

4 LVR means ‘Loan to Value Ratio’. It is the amount of your loan divided by the valuation of your property, calculated as a percentage. For example, if you apply for a loan of $400,000, which will be secured by a property valued at $500,000, your LVR is 80%. We calculate your LVR at the time we approve your loan and your discount won’t change because of changes to the LVR during the life of your loan.

5 Fixed Rate loans are available to (a) new home loans with a minimum application amount of $100,000; or (b) switching or restructuring of existing home loans. Maximum Loan to Value Ratio applies and includes Lenders' Mortgage Insurance and Great Southern Bank loan setup fees where applicable.

6 On expiry of the fixed rate period, the loan reverts to the Basic Variable Reference Rate relevant to your loan purpose and repayment type which applies at the time of expiry.

7 A $200 minimum withdrawal amount applies for redraws conducted in-branch.

8 You must maintain a minimum balance of $500 in each offset account to obtain an offset benefit. You will also not receive any interest on the funds in your offset accounts.

9 A daily transfer will refund any amounts paid in advance in excess of the total advance repayments allowed during the fixed rate period ($30,000) unless sufficient to pay out the loan in full (in which case an Early Payout Cost may apply). Excess funds will be transferred to the nominated deposit account, which must remain open for the fixed rate period.

^ Comparison rate accurate for $150,000 secured loan over 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

#Offer includes $0 Establishment Fee and is open to new or existing customers applying for a minimum application amount of $100,000 or more. Excludes applications for Internal Refinance of existing facilities. Applications must be received between 31/08/2022 and 29/02/2024 and settled by 31/05/2024. To be eligible to apply online you must be at least 18 years of age, a permanent resident of Australia, applying for yourself or as a married/defacto couple and buying an existing property or refinancing. Great Southern Bank may withdraw or amend this offer at any time without notice.

Speak to a Home Loan Specialist
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Tell us what you're looking for and we'll be in touch
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I'm building or renovating
I'm refinancing
Discuss my Great Southern Bank Home Loan
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What stage are you at?
I'm ready to apply for a home loan
I'm applying for pre-approval
I want to know if I qualify
I'm researching my options

Applying for pre-approval allows you to know the maximum amount you can borrow while you look for a property.

Pre-approval means that a lender has agreed to lend you an amount of money in-principle, but the loan hasn't been proceeded to full or final approval.

While pre-approval is not a fully approved loan it can help you narrow your search, negotiate, and make an offer with certainty and confidence.

How much would you like to borrow?
If you are unsure, please enter an approximate amount.
The minimum amount you can borrow is $100,000
When would you like to borrow?
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Great Southern Bank was previously known as CUA.
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Do you have a home loan with Great Southern Bank?
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How much is your current mortgage?
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First Home Guarantee
Family Home Guarantee
Regional First Home Buyer Guarantee

The Australian Government has introduced initiatives to support eligible Australians to build or purchase a new home sooner: the First Home Guarantee, Family Home Guarantee and Regional First Home Buyer Guarantee.

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