Investment Property Finance: The Complete Guide

Know the 2026 investor rules at a glance

Investment lending rules changed significantly in 2024-2025, and they're genuinely different from buying your own home. Here's the current picture:

Work out your usable equity

If you already own a home or another property, your deposit for the next purchase often comes from equity rather than fresh savings. Jagdip calculates your usable equity, what a lender will actually let you access, not just the paper gain in value, so you know your real starting position before looking at anything.

Understand how lenders assess rental income

Lenders don't count 100% of expected rental income toward your servicing, they typically apply a discount (often referred to as a "haircut") to account for vacancy periods and costs, and the exact percentage varies by lender. This directly affects how much you can borrow, so it's worth getting a real figure rather than assuming full rental income counts.

• Existing rental income (if you already have tenants in place) is usually treated more favourably than a projected rent on a new purchase
• Body corporate fees, rates, insurance and management costs are typically factored in against the property
• Your own income and existing debt still matter, rental income supplements your servicing, it doesn't replace the assessment entirely

Consider whether a new build changes your options

New builds are exempt from both the DTI cap and LVR restrictions, making them the most accessible entry point for many investors right now. This doesn't mean a new build is automatically the right choice for your goals, but it's genuinely worth weighing against an existing property given the exemption.

Know your DTI headroom before you look

The 7× gross income DTI cap for investors is a hard ceiling most lenders now apply. If you already hold other lending, whether on your own home or other investment properties, your remaining headroom under that cap is what actually determines your buying power, not just your income alone.

Interest deductibility (100% restored from April 2025) is a tax matter, always confirm your specific position with your accountant. Jagdip focuses on structuring the lending itself, including how it interacts with your existing portfolio.