Investing in property
Advanced tools, a tailored rate, guides and what to expect for first-timers and the seasoned property investor.
Your investment property plans
Investing in houses, units & land
Let’s inspect some of the pros and cons of buying a house, unit, townhouse, house & land package.
Building your dream team
Surround yourself with a crew of investment professionals to access a tailored rate, expert tax advice and off-market viewings.
Structuring ownership
Consider the tax, legal and relationship implications of buying in your own name, with others, a business name or a trust.
Featured variable rate with offset
For an investment property, with LVR up to 70%
6.09% p.a. |
6.46% p.a. |
|
|---|---|---|
Variable rate |
Comparison rate* |
Rate includes 0.10% p.a. discount for LVR+ up to 70%. Available on new Rocket Investment packaged# home loans, on P&I repayments. $150k min loan. $395 annual package fee and T&Cs apply.
What kind of investment property loan are you looking for?
Negotiate your rate
One conversation could save you 1000s
Book an appointment with a dedicated lending specialist or start applying online and we'll be in touch. We can tailor a variable investor rate with offset, just for you.
Steps for investing in property
1. Borrowing power
Get a ballpark range, by knowing how much you could borrow, based on simple questions about your income and expenses.
2. Savings and equity
Firm up your deposit. Buying another place? You could borrow against your equity – the portion you own of your property.
3. The research
Get to know the property and its suburb in seconds: the median gross rental yield, nearby rentals and sales.
4. Conditional approval
Get an obligation-free snapshot of your rate and repayments. A lender will call you back – you could get pre-approval.
What's your property investment stage?
Property investor calculators and guides
The numbers
Top up your repayments, rental yield, upfront costs and other costs.
Tips & guides
Deep dive into suburb trends, home loans and more.
Property investment FAQs
Generally, you'll need at least 20% deposit (80% loan-to-value ratio) for the property purchase. This can come from your savings or equity from your existing home. You may need to pay lenders mortgage insurance (LMI) if your deposit’s lower than 20%.
Certain medical practitioners can apply for our LMI waiver with a min 5% deposit. And certain emergency services and healthcare practitioners, earning a minimum annual income of $90,000, can apply for our LMI waiver with a min 10% deposit.
It depends on your investment strategy, personal situation and appetite for risk. Property tends to have a long-term investment time frame. For example, some investors hold their property for more than 5 years to maximise return on investment.
Some indications you may need to adjust your plan:
- Your negatively-geared property isn't growing in value
- You make less than you spend on your investment property
- Opportunity cost: there are better investments out there
- You plan to retire/work less sooner than expected.
They generally have the same features, though there are some differences:
1. Investment home loans often have higher home loan interest rates compared to owner occupier home loans because rental income can fluctuate, so it’s a bit riskier for us.
2. Investors can get an extra fixed rate discount by paying 12 months Interest Only in Advance2 on our Fixed Rate Investment home loan3.
3. Investors can apply for up to 10 years of Interest Only repayments4 (it’s 5 years for owner occupiers) as opposed to Principal & interest repayments.
All types of investing come with a level of financial risk, and investing in property is no different. So, it depends on your personal situation, investment strategy, risk appetite, and your level of experience.
Advantages of property investing:
- Capital growth. Property prices have shown good growth over the long-term, with less volatility than other investments like the stock market.
- Physical asset. You can renovate and add your personal touches to increase its value.
- Tax deduction. Your property's expenses may be offset against your annual taxable rental income – talk with your accountant or financial advisor.
- Passive income. The right property filled with quality tenants can generate a steady long-term income.
- Diversification. A property portfolio adds balance to your investment portfolio, protecting you against underperformance in any one asset class.
Property investing watchouts:
- Costs involved. Investment properties can be costlier than other investments, with high upfront costs like stamp duty, as well as other costs like a professional property manager and maintenance costs, Landlord Insurance and exit costs. For example, you may need to pay Capital Gains Tax when you sell – even if it’s your holiday home – which could eat into your capital growth. Read more on investment property costs.
- Non-liquid asset. If you need to access money, you can't sell off a room. It takes a long time to sell and settle a property, unlike reselling other investments, like shares and managed funds – read more on using equity to invest in shares.
- Risk. You could overestimate market value, property prices could fall, and you could get into negative equity – where your property value is less than your loan amount.
- Interest rates. Investment home loans have higher rates than owner-occupied home loans. And interest rates could rise over the life the of your loan, increasing your repayments.
- Tenants. You're reliant on your property having good tenants – periods of vacancy or bad tenants can eat into your property income, and reduce your rental yield.
Things you should know
Conditions, credit criteria, fees and charges apply. Residential lending is not available for Non-Australian Resident borrowers.
This information is general in nature and has been prepared without taking your personal objectives, circumstances and needs into account. You should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.
The taxation position described is a general statement and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation.
*Comparison rate: The comparison rate is based on a loan of $150,000 over the term of 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.
#Premier Advantage Package: Conditions of Use and $395 annual package fee applies. You must either hold or be approved for a Westpac Choice transaction account in order to qualify and continue to receive the benefits of the Premier Advantage Package. Applicants must have a Westpac Choice transaction account linked to the home loan at the time of settlement and must keep this account open for 60 days after settlement. Before deciding to acquire a Westpac Choice account, read the terms and conditions, and consider whether the product is right for you. Tax consequences may arise from this promotion for investors and customers should seek independent advice on any taxation matters.
Premier Advantage Package Conditions of Use (PDF 295KB)
+LVR stands for the loan-to-value ratio. LVR is the amount of your loan compared to the Bank's valuation of your property offered to secure your loan expressed as a percentage. Home loan rates for new loans are set based on the initial LVR and won't change during the life of the loan as the LVR changes.
^Claim based on The Forrester Digital Experience Review™: Australian Mobile Banking Apps, 2024 evaluation of four Australian Banks.
1Redraw facility: if you have 'available funds' (you’ve made extra home loan repayments) and you’ve activated your redraw facility, you’re free to redraw them with no redraw fee. Up to $100k will be available to redraw from your variable loan online or over the phone each day (unlimited in-branch). For fixed loans you can redraw up to your prepayment threshold during your fixed term. Read our Home Loan Redraw Authority form (PDF 66KB) for full details.
2Interest Only in Advance: Interest must be paid in advance annually for each chosen fixed rate term to receive this rate. If after the first year of a fixed rate term interest is no longer paid in advance the Interest Only in Advance discount will be removed for subsequent years.
Interest Only in Advance interest rates are available on Fixed Rate Investment Property Loans with fixed rate terms of 1, 2, 3, 4 or 5 years.
Interest Only in Advance interest rates and discounts apply to new Fixed Rate Investment Property Loan and loans which have been switched into Interest Only in Advance products. Existing fixed loans are not eligible unless the loan is re-fixed. Interest Only in Advance discounts are subject to change. Subject to Bank's approval. Normal lending criteria apply. Other conditions, fees and charges apply.
4Interest Only repayments: Conditions apply. It’s important to understand that interest rates for loans with Interest Only repayments are higher. Your repayments will increase at the end of the Interest Only term as the amount you’ve borrowed will need to be paid back in a shorter timeframe. This also means you’ll pay more interest over the life of the loan with an Interest Only repayment term, than if you’d opted to continue paying principal and interest. There’s a maximum of 5 years for Owner Occupied loans and 10 years for Investment loans on Interest Only repayments over the life of the loan. If you’ve had less than this, you may be able to extend the Interest Only repayment term, subject to conditions and a new assessment. You’ll need to start the process well in advance of your expiry date and provide details of your income, expenses and liabilities.