Buying your first investment property in Melbourne
Buying your first investment property in Melbourne is one of the most popular ways to build wealth. With the right loan structure and a clear strategy, your first investment can set up the next one.
How much deposit you need
Most investors aim for a 20% deposit to avoid lenders mortgage insurance, but you can buy with less and pay LMI if it gets you into the market sooner.
Many Melbourne investors use equity in their own home as the deposit, meaning they don't need to save fresh cash at all.
Using equity to fund your purchase
If your home has grown in value, you can often release equity to cover the deposit and costs on an investment property. This is how a lot of first-time investors get started.
A broker can structure this so your home loan and investment loan stay separate, keeping your tax position clean.
How lenders assess investment loans
Lenders count expected rent toward your income, but usually only 70–80% of it, and they assess your loan at a higher buffer rate. Your own income and expenses still matter.
Investment loan rates are typically a little higher than owner-occupier rates, and interest-only options can help cash flow — though they cost more long term.
Tax and cash flow basics
Investment property comes with potential tax benefits — interest, depreciation and certain expenses may be deductible. Negative or positive gearing affects your cash flow differently.
Always get tailored advice from an accountant, but understanding the basics helps you choose the right loan structure from the start.
Getting your strategy and loan right
The best investment loan supports your strategy — whether that's growth, yield or building a portfolio. The wrong structure can limit your next purchase.
A XLOANS broker helps you structure your first investment loan for cash flow, tax and future borrowing, comparing lenders so you start on the right foot.
Keep reading
Frequently asked questions
This page is general information only and not financial advice. Lending criteria, rates and government schemes change — speak to a XLOANS broker for advice tailored to your situation. XLOANS is a Melbourne-based mortgage broking service.
Ready to buy your first investment?
A XLOANS broker will structure your investment loan for growth and cash flow — free, in a quick chat.