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Investment Property Loans Melbourne | Residential & Commercial Strategic Finance.

Chasing lenders on your own can quickly turn into a time-consuming and frustrating process. Let us handle the hard work for you. Working closely with your financial adviser, we not only help you secure a suitable loan for your investment property but also take a strategic approach to ensure your loan structure supports your long-term goals.

Since investment loans often come with stricter requirements—such as higher interest rates—professional guidance can make a significant difference in maximising the benefits of your loan over time.
(Please note: we do not provide tax or financial advice and recommend consulting a qualified professional for guidance in those areas.)

We Offer the following Property Loans:

Our expert brokers also specialise in SMSF Loans and Property Investment lending.

Residential vs. Commercial Investment: Which is Right for Your Melbourne Portfolio?

Deciding where to allocate your capital in the Melbourne market requires a clear understanding of your financial goals. While residential property is the traditional “entry point” for many Victorians, the recent shifts in land tax and the introduction of the Commercial and Industrial Property Tax (CIPT) have made commercial assets increasingly attractive for cash-flow-heavy strategies.

With investment property, there are many factors to consider and the rules can be complex. Please Book a Time or Contact Us for personalised information and advice. Our team is here to help.

Here is a quick comparison of Residential and Commercial Property Investment.

1. Residential Investment: The “Growth & Stability” Play

Residential property in Melbourne remains a favoured asset for long-term capital appreciation, particularly in supply-constrained inner-ring suburbs and high-growth infrastructure corridors.

The Strategy: High leverage (up to 80-90% LVR) and capital growth.
2026 Context: With Melbourne’s vacancy rate sitting at a historic low of 1.1%, rental income is more reliable than ever. However, investors must now account for the Vacant Residential Land Tax (VRLT) and the 2026 Short Stay Levy.
Best For: Investors looking to build equity over 10+ years and those who prefer a familiar asset class with a lower barrier to entry.

2. Commercial Investment: The “Yield & Cash Flow” Play

Commercial property (particularly warehouses in the West or medical suites in the East) is the go-to for investors seeking immediate income to offset higher interest rates.

The Strategy: Higher yields (typically 5%–7%) and “Triple Net” leases where the tenant often pays the outgoings (rates, insurance, repairs).
2026 Context: The removal of upfront stamp duty for properties entering the CIPT regime has lowered the initial “cost of entry,” allowing your capital to go further.
Best For: Sophisticated investors, business owners looking to occupy their own premises, or SMSF holders seeking high-yield, stable income.

Side-by-Side Comparison: 2026 Melbourne Market

Feature	Residential (e.g., Pakenham/Southbank)	Commercial (e.g., Truganina/Dandenong)
Average Net Yield	2.8% – 3.8%	5.0% – 6.5%
Typical Deposit	10% – 20%	30% – 35%
Lease Length	6 – 12 Months	3 – 10 Years
Outgoings	Paid by Landlord	Paid by Tenant (usually)
Primary Driver	Population growth & migration.	Business activity & e-commerce.
2026 Tax Focus	Land Tax Surcharges & VRLT.	Transition to CIPT (No Stamp Duty).

Which One Suits Your Strategy?

Choose Residential if:

You want to maximise your borrowing power (higher LVRs).
You are targeting suburbs benefiting from the Metro Tunnel (Sunbury, Pakenham) or West Gate Tunnel projects.
You want an asset that is generally easier to sell quickly (high liquidity).

Choose Commercial if:

You need high monthly cash flow to cover a mortgage or fund a lifestyle.
You want to leverage the 10-year CIPT transition loan to avoid large upfront stamp duty costs.
You are an SMSF investor looking for a “set and forget” tenant with a long-term lease.

LoanBrix Strategic Tip: In 2026, we are seeing a trend of “Diversified Portfolios” where investors hold a high-growth residential house in a corridor like Clyde North while using an SMSF to hold a high-yield industrial warehouse in Derrimut. This provides the perfect balance of capital gain and immediate income.

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Our Investment Property Loan Process

1. Consultation & Pre-Approval

Before starting your investment property loan journey, we’ll take the time to understand your goals, financial position, and borrowing capacity. To get things moving efficiently, we’ll ask you to complete a short responsible lending questionnaire before meeting with our team.
Your LoanBrix broker will then guide you through every step of the pre-approval process—helping you understand your options, prepare the necessary documentation, and ensure you’re fully ready to apply with confidence.

2. Identify Loan Options

There are several ways to structure and repay your investment loan, each offering unique benefits.
If you value payment stability, a fixed-rate loan keeps your repayments consistent. If you prefer flexibility, a variable-rate loan allows you to make extra repayments and potentially pay off your loan faster. Or you may opt for a split loan—combining the certainty of a fixed rate with the freedom of a variable rate.

You can also choose between a principal and interest loan, which helps you build equity faster, or an interest-only loan, which keeps repayments lower for a set period.
Not sure which structure suits your goals best? Our expert brokers, in collaboration with your accountant, will help tailor a solution that fits your strategy and investment objectives.

3. Application & Documentation

When you’re ready to apply, we’ll gather details about your financial position—such as your income, existing loans, savings, investments, and other assets (like vehicles or property). This helps determine your current equity and borrowing power.

You’ll also need to provide valid identification, including:

Primary ID: driver’s licence, passport, or birth certificate
Secondary ID: credit/debit card, Medicare card, or health care card

Your LoanBrix broker will make sure everything is in order to keep your application moving smoothly.

4. Approval & Settlement

Once your loan is approved and you’ve agreed to purchase your investment property, we’ll coordinate with your solicitor or conveyancer to manage the settlement process.
From reviewing and signing contracts to finalising settlement, your LoanBrix broker will work closely with all parties involved to ensure everything proceeds seamlessly and stress-free.

5. Review Your Lending Portfolio

After settlement, your investment journey doesn’t stop there. Regularly reviewing your lending portfolio helps ensure your loan continues to align with your goals and market conditions.
The LoanBrix team will proactively monitor your loan and lender performance, recommending adjustments or refinancing opportunities where beneficial—so your investment strategy stays on track for the long term.

Why Choose LoanBrix?

At LoanBrix, our experienced brokers are dedicated to delivering proactive, transparent guidance every step of the way. You’ll always know where things stand, with regular updates and reminders about key milestones and deadlines throughout your loan process.

What can often feel complex or overwhelming is made simple and straightforward with the support of the LoanBrix team—ensuring you feel confident and informed from start to finish.

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Frequently asked questions

Is property investment in Melbourne still viable with the current Land Tax?

Yes, but the strategy has shifted. Investors are moving toward high-yield commercial assets or dual-occupancy residential builds in growth corridors like Clyde and Sunbury to offset the Victorian Land Tax surcharges.

What LVR do I need for a Melbourne investment property loan?

For residential, most lenders look for 80% LVR to avoid LMI. For commercial investments in industrial zones like Dandenong, we can still secure 70-75% LVR based on strong rental demand.

Can I use equity to buy an investment property in Victoria?

Absolutely. With many Melbourne homes seeing significant equity growth in recent years, we specialise in “equity pull” loans that cover the deposit and stamp duty for your next investment.

Disclaimer: The information on this page is general in nature and does not constitute financial advice.

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How can we help you?

54 Lending Partners

We have relationships with all the major financial institutions and are constantly reviewing new and innovative loans to help provide you with the best possible solution.

Five Star Rated

We have over one hundred 5 Star ratings from clients on our Google business profile. We pride ourselves on customer service, and aim always to provide the best possible experience.

MFAA Member Since 2009

To become a member, individuals must meet specific requirements, including professional qualifications, a good character, and holding an Australian Credit Licence (ACL) or being a Credit Representative.

Can I use my home equity to buy an investment property?

Yes! You can use your home equity in place of a cash deposit to buy an investment property. If you have questions on how you can do this, don’t hesitate to speak with one of our brokers.

How much can I borrow for an investment property loan?

The amount you can borrow for your investment property loan will depend on your current situation; how many people you live with, how much you earn, expected rental income, current expenses along with borrowing history and credit score. However, you can borrow up to 90% of the property’s value without using your home equity as a deposit. To accurately assess how much you can borrow, be sure to contact one of our brokers.

What costs are involved in an investment property loan?

For your investment property loans, you can expect costs that vary. You will need to save a deposit, which we recommend be at least 20% (avoiding the lender’s mortgage insurance), along with the repayments of the loan itself. This will depend on the lender you choose, but Mortgage Broker Melbourne is sure to get you the best deal on your loan. Additionally, there are often loan establishment fees that your lender will charge for processing the documentation. Ongoing loan fees and interest payments are also costs to consider, as they are the ongoing costs of loans. You should also look out for property loan break costs if you opt for a fixed loan; they only apply when leaving the loan before the fixed-rate term ends. However, we don’t charge any fees for our service! We will provide you with expert advice to ensure you get the most out of your investment property loan.

Investment Property Loans.