What is the difference between owner-occupied and investment home loan rates?

Investment home loans typically attract higher interest rates than owner-occupied loans, reflecting the higher risk profile lenders assign to investment properties. The difference is usually 0.10% to 0.50% p.a. depending on the lender.

What does LVR mean in home loans?

LVR stands for Loan to Value Ratio — the loan amount as a percentage of the property value. An 80% LVR means you're borrowing 80% and have a 20% deposit or equity. Lower LVRs often attract better rates.

Variable Home Loan Rates Australia (2026)

Q: What is a comparison rate?

A comparison rate includes the interest rate plus most fees and charges, expressed as a single percentage, to help you compare loans on a more like-for-like basis. Warning: comparison rates are based on a $150,000 loan over 25 years and may not reflect your actual costs.

Owner-occupied and investment rates, with LVR tiers where published. Last updated: 24/05/2026

Rates can change without notice. Last verified: 24/05/2026 (AEST). Please confirm details on the bank’s official page.

Rates vary by loan purpose (owner-occupied vs investment), repayment type (P&I vs interest-only), and LVR. The table below shows published rates for each lender — where a lender hasn't published a rate for a category, that's noted.

See our expert picks: Best Home Loans 2026 →

Lender	OO P&I	Investment P&I	IO	Action
Pacific Mortgage Group Owner Occupied Variable	5.59%(≤80%)	5.84%(≤80%)	IO available on request	See review
People's Choice Basic Variable	from 5.64% <70%: 5.64%(comp. 5.65%) 70–80%: 5.84%(comp. 5.85%) >80%: 6.24%(comp. 6.25%)	Not published	Investment and IO not published — contact lender	See review
Unloan (CBA) Refinance Variable	from 5.69% ≤80%: 5.69%(comp. 5.60%) ≤90%: 5.99%(comp. 5.90%)	from 5.84% ≤80%: 5.84%(comp. 5.75%) ≤90%: 6.14%(comp. 6.05%)	P&I only — no IO products	See review
Up Home Variable Rate Loan	5.70%Verified 17 May 2026 — confirm in app	N/A	IO and investment not available	See review
Macquarie Bank Basic Home Loan	from 5.84% ≤60%: 5.84%(comp. 5.86%) ≤70%: 5.84%(comp. 5.86%) ≤80%: 5.89%(comp. 5.91%) ≤90%: 6.09%(comp. 6.11%) ≤95%: 6.89%(comp. 6.92%)	from 6.15% ≤60%: 6.15%(comp. 6.17%) ≤70%: 6.19%(comp. 6.21%) ≤80%: 6.29%(comp. 6.31%)	IO rates available — contact lender	See review
Reduce Home Loans Eco Home Loan Variable	5.94%(≤80%)	from 6.19% ≤60%: 6.19%(comp. 6.25%) ≤80%: 6.29%(comp. 6.25%)	IO not published — contact lender	See review
HSBC Australia Home Value Loan	from 5.99% ≤60%: 5.99%(comp. 6.00%) 60–70%: 6.04%(comp. 6.05%) 70–80%: 6.09%(comp. 6.10%) >80%: 6.39%(comp. 6.40%)	from 6.19% ≤60%: 6.19%(comp. 6.20%) 60–70%: 6.24%(comp. 6.25%) 70–80%: 6.29%(comp. 6.30%) >80%: 6.59%(comp. 6.60%)	IO rates available — contact lender	See review
Westpac Flexi First Option (Online Offer)	from 5.99% ≤70%: 5.99%(comp. 6.00%) 70–80%: 6.09%(comp. 6.10%) >80%: 6.84%(comp. 6.85%)	from 6.14% ≤70%: 6.14%(comp. 6.14%) 70–80%: 6.24%(comp. 6.24%) >80%: 7.14%(comp. 7.14%)	IO rates available — contact lender	See review
loans.com.au Variable Home Loan (Bare)	6.04%(≤90%)	Not published	Investment and IO not published — contact lender	See review
Bendigo Bank Express / Easy Home Loan	from 6.04% ≤80% (Express): 6.04%(comp. 6.05%) ≤80% (Easy): 6.13%(comp. 6.15%) ≤95% (Flex): 6.18%(comp. 6.20%)	Not published	Investment and IO rates — contact Bendigo Bank	See review
Suncorp Bank Back to Basics Variable	6.08%(≤60%)	Not published	Investment and IO rates — contact Suncorp	See review
ING Mortgage Simplifier	6.14%(≤80%)	Not published	Investment and IO — contact lender	See review
St.George Basic Home Loan	from 6.29% ≤70%: 6.29%(comp. 6.30%) 70–80%: 6.39%(comp. 6.40%) >80%: 6.69%(comp. 6.70%)	Not published	Investment and IO rates — contact St.George	See review
CommBank Standard Variable Rate (Wealth Package)	from 6.34% ≤60%: 6.34%(comp. 6.72%) 60–70%: 6.39%(comp. 6.77%) 70–80%: 6.49%(comp. 6.87%) 80–90%: 6.79%(comp. 7.16%) 90–95%: 7.74%(comp. 8.10%)	Not published	Investment and IO rates — contact CommBank	See review
ANZ Simplicity PLUS	from 6.39% ≤60%: 6.39%(comp. 6.39%) ≤70%: 6.44%(comp. 6.44%) ≤80%: 6.54%(comp. 6.54%) ≤90%: 7.09%(comp. 7.09%)	Not published	Investment and IO rates — contact ANZ	See review
NAB Base Variable Rate Home Loan	6.44%	6.96%	IO available — contact NAB	See review

Comparison rates based on a $150,000 loan over 25 years. Warning: comparison rates may not reflect your actual costs. Rates are for P&I repayments unless stated. IO = interest-only.

Owner-Occupied vs Investment Rates

Lenders charge higher rates for investment properties than owner-occupied homes — typically 0.15% to 0.50% p.a. more. This reflects the higher default risk lenders assign to investment loans. For investors, the interest component may be tax-deductible, which partially offsets the higher rate.

How LVR Affects Your Rate

LVR (Loan to Value Ratio) is your loan amount as a percentage of the property's value. Borrowers with lower LVRs (more equity or a larger deposit) represent less risk to lenders and often access lower rates. People's Choice, for example, charges 5.64% p.a. below 70% LVR but 6.24% p.a. above 80% LVR — a 0.60% difference.

LMI (Lenders Mortgage Insurance) is typically required above 80% LVR and adds cost. Some lenders — like loans.com.au — accept up to 90% LVR, making them accessible to buyers with smaller deposits.

P&I vs Interest-Only

Principal and interest (P&I) repayments pay down your loan balance each month. Interest-only (IO) repayments cover just the interest, leaving the principal unchanged. IO is more common for investors managing cash flow. IO rates are generally higher than P&I rates. None of the lenders on this page publish IO rates directly — contact lenders for IO quotes.

In-Depth Reviews

Related: Term Deposits

FAQs

Why are investment rates higher than owner-occupied rates?

Lenders consider investment loans higher risk than owner-occupied loans and price accordingly — typically 0.15% to 0.50% p.a. more.

What is a comparison rate?

A rate that includes interest plus most fees, expressed as a single percentage. Based on a $150,000 loan over 25 years — not necessarily your actual situation.

What does LVR mean?

Loan to Value Ratio — your loan as a percentage of the property value. Lower LVR = more equity = often a lower rate. Above 80% LVR usually requires LMI.

Information is general in nature and may change without notice. Check rates, eligibility and fees on the lender's website before applying. This is not financial advice.