Rental property loans
Buying a home to rent out?
A loan to buy a residential property to rent out. Lenders usually want a larger deposit than for a home you live in, and count only part of the rent towards repayments to allow for costs and empty weeks.
Who it suits
- Buying a first or further rental
- Using equity in your own home as the deposit
- Converting your home into a rental when you move
What lenders look at
- A larger deposit, usually 30% (20% for new builds)
- Expected rent, counted at a discount
- Your total debts compared with your income
- Interest-only versus principal-and-interest options
What to prepare
Tick them off as you go.
Questions to ask
- How much of the rent will be counted?
- Can part of the loan be interest-only, and for how long?
- Can my home's equity provide the deposit?
- Should this loan be kept separate from my home loan?
Everyone's situation is different. Lenders weigh things differently and small details change the answer. An adviser can tell you where you stand with rental property loans and what to do next.
Talk to an adviserRun the numbers
Calculators for this
Deposit and LVR
Check your loan-to-value ratio against the deposit lenders usually want.
Calculate nowRepayingInterest only vs principal and interest
Compare the cost of an interest-only period.
Calculate nowHome buyingBorrowing power
Estimate how much you could borrow, the way lenders test it.
Calculate nowLearn more
Guides
LVR and DTI: the two rules behind every home loan
Loan-to-value ratio (LVR) is your loan divided by the property's value. Borrow $640,000 on an $800,000 home and your LVR is 80%, meaning a 20%…
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A fixed rate stays the same for a set term, from six months to five years. You know your repayments, but extra repayments are limited and leaving…
Read the guideEvery situation is different
Tell us what you're planning and an adviser will work through your options with you.