Buying an established investment property in Brisbane means choosing a loan structured to support rental income, manage tax, and build equity over time.
The deposit you need, the rate you pay, and the way you structure repayments all depend on the property type, your income, and how the loan interacts with your other borrowing. Lenders treat investor loans differently to owner-occupier finance, and the rules around serviceability, documentation, and tax treatment shifted substantially in mid-2026.
How Much Deposit Do You Need for an Investment Property
Most lenders require a 20 per cent deposit to avoid Lenders Mortgage Insurance on an investor loan. Some will lend at 10 per cent down, but LMI premiums at that loan to value ratio can add several thousand dollars to your upfront cost, and not all lenders offer investor LMI at higher ratios.
If you already own property, you may be able to use equity from your home to cover the deposit and costs. Consider a buyer who owns a home in Ashgrove with enough usable equity to fund a 20 per cent deposit on a unit in Woolloongabba. The lender values the unit, calculates the required deposit and settlement costs, and advances those funds against the Ashgrove property as a separate split. The buyer holds two securities, two loans, and keeps the investment debt quarantined from the owner-occupied portion. That separation matters for tax and for future refinancing.
Cash deposits work the same way in terms of ratio, but you will need to show three months of genuine savings or an acceptable source such as sale proceeds, inheritance, or a declared gift from family. Lenders apply a serviceability buffer of three percentage points above the product rate, and from February this year a debt-to-income cap limits how much you can borrow if your total debt sits at six times income or more.
Interest Only or Principal and Interest Repayments
Interest only repayments keep your monthly outgoing lower and preserve cash flow, which matters when rental income does not cover the full loan cost. Most lenders offer interest only periods of one to five years on investment loans, after which the loan reverts to principal and interest unless you apply to extend.
Interest only suits investors focused on portfolio growth or those who expect income to rise before the principal portion begins. Principal and interest builds equity each month and reduces your balance faster, but the repayment is higher from day one.
In our experience, buyers using negative gearing to offset other income often choose interest only during the early years, then switch to principal and interest once rents rise or their marginal tax rate changes. The structure you pick now does not lock you in, you can request a switch during the loan term if your lender permits it and your circumstances still meet policy.
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Variable Rate, Fixed Rate, or a Split Strategy
A variable rate investment loan moves with the Reserve Bank cycle and lets you make extra repayments or refinance without break costs. A fixed rate locks your interest rate for one to five years, which smooths your budget but removes flexibility during the fixed term.
Some investors split the loan, fixing part to manage risk and leaving part variable to retain offset and redraw. The allocation depends on your income stability, the rental yield, and how much rate movement you can absorb. Fixed rates also limit how much extra you can pay each year, typically to $10,000 or $30,000 depending on the lender, so if you plan to pay down the loan quickly or use an offset account funded by rental income, variable or a small fixed portion works better.
Rate discounts vary by loan size, deposit, and the lender's current portfolio settings. Investor rates typically sit 20 to 80 basis points above owner-occupier rates for the same product, and interest only adds another margin again. The gap narrows when you hold multiple facilities with the lender or bring across other business such as transaction accounts or offset balances.
Tax Treatment After the Mid-2026 Rule Change
The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 received Royal Assent on 26 June 2026 and changes how rental losses are treated from 1 July 2027. If you buy an established property now, rental losses can still be offset against your salary or other income until 30 June 2027 under the transitional rule. From 1 July 2027, those losses are quarantined and can only be offset against other residential rental income or carried forward to use against future rental profit or capital gains.
Properties purchased before 7:30pm on 12 May 2026, including those under contract at that time, remain fully negatively geared under the old rules until you sell. Newly built properties that meet the definition in the Act, meaning construction on vacant land or developments that increase dwelling numbers, continue to allow negative gearing in the traditional sense even after 1 July 2027.
This does not stop you borrowing or claiming interest as a deduction. It changes where you can use the loss. If you hold multiple investment properties and one runs at a profit, the quarantined loss from another property can offset that profit. If your portfolio runs at a net loss, you carry that loss forward rather than using it against your wage.
How Lenders Assess Rental Income for Serviceability
Lenders take 80 per cent of the gross rental income and add it to your other income when calculating serviceability. The 20 per cent reduction accounts for vacancy, maintenance, and body corporate costs. If the property is tenanted at settlement, you will need a signed lease. If it is vacant, the lender will use a rental assessment from a licensed property manager or valuer.
If you are refinancing an existing investment loan or buying a second property, the lender also looks at your current portfolio. A property generating strong rental income improves your position. A property with high body corporate fees, low rent, or a history of vacancy can reduce what you can borrow, even if the loan on that property is performing.
Debt-to-income settings introduced in February this year cap how much total debt you can carry relative to your gross income. The cap sits at six times for 80 per cent of new lending in each portfolio. Some lenders manage this by reducing maximum loan amounts for higher-income borrowers with multiple properties. Others tighten rental income shading or apply higher interest rate buffers. The result is that your borrowing capacity for a second or third investment property may be lower than it was 18 months ago, even if your income has not changed.
Loan Features That Support Property Investment Strategy
An offset account linked to a variable rate investment loan lets you park rental income, tax refunds, or other cash and reduce the interest charged each month without losing access to the funds. Offset balances do not reduce the deductible debt, so the full loan amount remains claimable while you pay interest on a lower net balance.
Redraw works differently. You make extra repayments into the loan, which lowers the balance and the interest cost, but redrawing those funds later may create a tax issue if the redrawn amount is used for private purposes. Offset avoids that problem because the funds never enter the loan.
Portability clauses let you transfer the loan to a different security if you sell the original property and buy another within a set period, usually 90 days. That can save discharge and application fees, and in some cases preserve your rate and features. Not all lenders offer portability on investor loans, and those that do may reassess your income and the new property before approving the transfer.
Some products include free valuation updates, rate lock options during application, or the ability to request a product switch online without a full refinance. Those features matter less than rate and serviceability, but they do add flexibility if your investment strategy involves buying, holding, and periodically reviewing your structure.
What to Bring to Your Investment Loan Application
You will need two years of tax returns if you are self-employed, or recent payslips and a letter of employment if you are a wage earner. Lenders want to see the rental income from any properties you already own, so have your lease agreements, property manager statements, and evidence of rental payments ready.
If you are using equity, the lender will order a valuation on the property being used as security. If you are applying for a new purchase, they will value the investment property based on the contract price or an independent assessment, whichever is lower. Body corporate statements, strata reports, and council rates notices are required for units and townhouses.
Your deposit must be evidenced with three months of bank statements showing genuine savings, or a statutory declaration and evidence if the funds come from a gift, sale, or inheritance. The lender will also want to see how you have managed your current debt, so credit cards, personal loans, and any other mortgages will be reviewed as part of the assessment.
When Refinancing an Investment Loan Makes Sense
If your current investment loan rate sits above what is available elsewhere, refinancing can lower your repayment and improve cash flow. You may also refinance to release equity for another purchase, switch from interest only to principal and interest, or consolidate multiple loans under one lender for simpler reporting.
Refinancing costs typically include discharge fees from your current lender, application and valuation fees with the new lender, and sometimes legal or settlement fees. Those costs need to be weighed against the benefit, particularly if you are within a fixed rate term and facing break costs.
Some lenders offer to cover or rebate refinance costs if you are bringing across a loan above a certain size, or if you are moving multiple facilities. If your portfolio has grown and your equity position has improved since you first borrowed, refinancing also gives you a chance to restructure your loans so that deductible and non-deductible debt are separated cleanly, which simplifies tax reporting and maximises claimable expenses going forward.
Call one of our team or book an appointment at a time that works for you. We can access investment loan options from lenders across Australia, compare rates and features, and structure your borrowing to suit both your current position and your longer-term property investment strategy.
Frequently Asked Questions
What deposit do I need for an investment property loan in Brisbane?
Most lenders require a 20 per cent deposit to avoid Lenders Mortgage Insurance on an investor loan. You can borrow at 10 per cent down with some lenders, but LMI premiums will add thousands to your upfront cost. If you own property, you may be able to use equity to cover the deposit and settlement costs.
Can I still negatively gear an investment property bought in 2026?
If you buy an established property now, rental losses can be offset against salary or other income until 30 June 2027 under transitional rules. From 1 July 2027, those losses are quarantined and can only offset other residential rental income or be carried forward. Properties purchased before 7:30pm on 12 May 2026 remain fully negatively geared under the old rules.
Should I choose interest only or principal and interest for an investment loan?
Interest only keeps monthly repayments lower and preserves cash flow, which suits investors using negative gearing or focused on portfolio growth. Principal and interest builds equity faster but costs more each month. You can switch between structures during the loan term if your lender permits and your circumstances meet policy.
How do lenders assess rental income when I apply for an investment loan?
Lenders take 80 per cent of the gross rental income and add it to your other income for serviceability. The 20 per cent reduction accounts for vacancy, maintenance, and body corporate costs. If the property is tenanted, you need a signed lease. If vacant, the lender will use a rental assessment from a property manager or valuer.
When should I consider refinancing my investment property loan?
Refinancing makes sense if your current rate is above market, you want to release equity for another purchase, or you need to restructure multiple loans for better tax separation. Weigh refinancing costs such as discharge and application fees against the benefit, especially if you are in a fixed rate term with potential break costs.
