Investment loans in Queensland: deposit, equity and loan structure

The deposit gets you into the investment. The monthly gap decides whether you can keep it. I'd work out both before looking at rates: how much cash you need to settle, then what you'll contribute after rent, repayments and property costs.

We'll help you compare the loan structure as well as the rate. If you're relying on every week's rent arriving, or using all your available cash for the purchase, build more breathing room into the plan before making an offer.

A 20% deposit generally avoids lenders mortgage insurance (LMI). Some investment loans allow a smaller deposit, with LMI or an eligible professional waiver. Check that any waiver covers investment lending and your repayment type: an offer for the home you live in may not extend to an investment or interest only loan. The property, income and total borrowing still matter.

Purchase costs sit on top of the deposit. Allow for Queensland transfer duty, conveyancing, inspections, lender fees and a cash reserve for the property. Don't assume a 10% deposit means 10% is all you need.

The $24,525 duty figure uses QRO's standard transfer-duty rates on a $700k dutiable value, checked on 11 September 2026. It assumes no concession, exemption or additional foreign acquirer duty. That's $17,325 plus $4.50 for each $100 above $540k. Your solicitor should confirm the dutiable value and any additional duty.

The table's subtotals aren't the full cash needed to settle. Add the other buying costs, any LMI payable from your funds and a reserve for vacancy and repairs.

LVR is the loan as a percentage of the property value used by the lender. A lower bank valuation can increase the cash you need. Our valuation guide shows how that happens.

You may be able to borrow against your existing home to fund the deposit and costs. Equity is the difference between the home's value and the debt secured against it; the amount you can actually release is usually less.

For example, a home valued at $800k with a $400k mortgage has $400k in equity. At an 80% LVR limit, total borrowing against that home would be $640k. Subtract the existing $400k loan and the possible additional borrowing is $240k, before fees and the lender's income assessment.

That $240k would be another loan to repay. It isn't extra income, and using your home as security puts it at risk if repayments aren't maintained. We'll assess the existing mortgage, the equity loan and the investment loan together.

Tell us what the money is for and when you'll need it. The lender may ask for the next purchase contract or a breakdown of the planned costs. If you haven't found the property yet, say so: borrowing for a future purchase can be assessed differently from funding a signed contract.

Our property valuation guide helps you check the value behind your equity calculation. Then use our household-expenses guide to prepare the spending figures you’ll need for the loan assessment.

Start with annual rent, then allow for vacancy, management fees, rates, insurance, body corporate levies where relevant, repairs and mortgage repayments. Include the home you live in too: rentvesting means you still pay your own rent.

A property renting for $600 a week brings in $31,200 over 52 fully paid weeks. If it's vacant for 4 weeks, that falls to $28,800 before any property costs or loan repayments. Keep the reserve available from the start rather than hoping the first few months will pay for it.

Ask the property manager about likely ongoing costs and the building inspector about larger repairs. An older roof or upcoming body corporate works can change the numbers more than a small difference in the interest rate.

If your home funds the investment deposit, a separate loan split can make the purpose of that borrowing easier to track. Keep the investment funds separate from everyday spending and ask your accountant how the money should move through the accounts.

You can also compare keeping each property as separate security with securing both properties under the same lending arrangement. Separate security can give you more flexibility when selling or refinancing one property. It doesn't remove the risk attached to a loan secured against your home.

Money in an offset is held in a separate account and reduces the balance used to calculate interest. Extra repayments reduce the loan itself; taking that money back out through redraw creates a new borrowing.

That difference matters if you later use the money privately.

For example, redrawing from an investment loan to buy your own car introduces a private use that needs to be separated in the interest calculation. Keeping savings in an offset works differently. Ask your accountant to check the structure and keep the records clear before moving the money. The ATO's guidance on rental interest explains why the use of borrowed money matters.

You might have one account for the home loan and another for the investment deposit, while the lender still holds both properties as security. If you later sell one property, the lender may need to review the remaining loans and security before releasing the sale proceeds.

Ask which property secures each loan and what would happen if you sold or refinanced just one. A separate loan split helps track the purpose of the borrowing; the security arrangement controls which properties the lender can rely on. Have that explained before choosing the structure.

Borrowing more or paying extra interest doesn't become worthwhile simply because some interest may be deductible. Start with the property's cash flow and your longer-term plans.

The rent on your lease and the rent counted by a lender can be quite different. Start with the amount the lender can verify. It may then cap the gross rent, use only a percentage of it and allow for property expenses. The order and deductions depend on the lender and property.

On $500 a week in rent, 80% is $400 and 90% is $450. I'd then check what the lender deducts for expenses or limits for the property's rental yield. Those next steps can change which loan gives you more room.

Published examples checked on 11 September 2026. The linked lender sources at the end of this guide explain the calculations. Compare the amount left after all adjustments, alongside your wages and existing commitments.

At one lender in the table, $600 a week in verified rent starts at $31.2k a year. Counting 90% leaves $28,080, then a separate 10% expense allowance takes off $3,120. That leaves $24,960 a year, or $480 a week. Higher accepted expenses could reduce it further.

Use the actual rent and costs for your household budget. This lower amount is used to test the loan.

Some lenders cap annual rent at a percentage of the property's value before counting a share of it. On the 6% cap in the table, a $400k property earning $600 a week starts at $24k of eligible rent, even though the lease shows $31.2k.

For borrowing above 70% and up to 80% of the accepted value, the table's 85% factor leaves $20,400 a year, or about $392 a week, before other assessment items. I'd check that calculation early on a dual key property or small unit where the advertised rental yield looks especially high.

An existing lease or property manager's rental appraisal may be needed. We'll also compare your wages, overtime, business income and other debts. The borrowing power guide explains the other figures that can change the result.

A lender may limit your total debt compared with your income, known as debt-to-income or DTI. Having a large deposit doesn’t remove that test. For example, $1.2m of counted debt divided by $200k of counted annual income gives a DTI of 6. The lender decides which debts and income amounts enter its calculation.

Some lenders also limit how much of your assessed income can come from rent. That can matter as your portfolio grows, even if each property has a tenant. Bring the balances, limits, rents and expenses for every property so we can compare the whole position.

Our borrowing-power guide explains the common limits. The household-expenses guide shows why a lender may use a different spending figure from the one in your budget.

An investment purchase doesn't generally receive the same home concessions as a property you'll live in. Use Queensland Revenue Office's transfer duty information for the current calculation and have your solicitor confirm any concession you intend to claim.

Land tax may also apply, depending on the owner, ownership structure and total taxable land value. It isn't calculated simply from the purchase price. Check Queensland land tax rules before deciding whose name or which entity will own the property.

A pre-approval helps establish a budget, but the lender still needs to accept the property and complete its conditions. Arrange the valuation and provide the contract promptly once you've bought.

Have your solicitor review finance, inspection and settlement dates. If you're bidding at auction, complete the finance and legal checks beforehand rather than expecting a finance clause afterwards. Our contract-to-settlement guide explains what happens next.

A lease ending, an interest only period expiring or a decision to move into the property can change what you need. Review the rate, loan term, offset and repayment amount together. Refinancing back to a longer term may reduce the monthly payment while increasing total interest.

If you're choosing between buying a rental and a home to live in, our rentvesting guide compares the practical trade-offs.