Doing Your Investment Property Tax? Review the Loan Rate Too (2026)

Doing Your Investment Property Tax? Review the Loan Rate Too (2026)

The numbers you gather for your investment property tax return are the same numbers that decide your loan. A natural moment to check the rate.

At tax time you already pull together everything that matters about your investment property: the rental income, the depreciation schedule, the interest you paid, and what the place is worth now. Those are the same numbers that decide your loan. So while the figures are in front of you, turn the same eye to the mortgage sitting on the property and check the rate. Investors tend to set and forget the loan for years while rates and equity quietly move on without them.

Why tax time is the natural moment to look at your investment loan

This is not a deadline. A loan review is worth doing at any time of year, and nothing here hinges on 30 June. The point is simpler: tax time is when an investor naturally has every relevant figure in one place. You have totalled the rent. You have the interest paid on the loan. You have a depreciation schedule and a current sense of what the property is worth.

Those four numbers are the heart of any refinance assessment. A lender wants to know the rental income, the loan size against the property value, and your wider position. When you are already across them for the tax return, checking whether your rate is still competitive is a small additional step rather than a separate project. If you want the mechanics of how refinancing actually works, our complete guide to refinancing a home loan covers the process, break costs and timing in full, so this piece stays on the investor decision.

What investment property loan rates look like in 2026

As a general guide for 2026, investor variable principal and interest rates sit in the low to mid 6% range, from around 6% p.a. for borrowers at up to 80% LVR with a strong profile. Investor fixed rates start from around 6.2% p.a. Interest-only investor rates sit higher than principal and interest: lower repayments now, more interest over the life of the loan.

These are indicative figures only, drawn from publicly listed market rates, and they vary by lender and borrower and are subject to change. The point is the gap, not the decimal. Investor rates sit above equivalent owner-occupier rates because lenders price investment lending higher, and an old set-and-forget investor loan taken out years ago is frequently well above todays competitive band. The big levers on where you land are LVR, interest-only versus P&I, loan size, and whether you bundle an offset. This is general information, not credit assistance; eligibility and lender criteria apply.

When refinancing an investment loan actually pays off

Three situations make a review worthwhile for an investor. First, a rate gap: if your investor loan is sitting well above the competitive 2026 band, even a modest reduction improves real cashflow every month. Second, equity growth: if the property has risen in value since you bought, your LVR may now sit in a lower tier that unlocks a sharper rate, and the same equity can fund the next purchase. Third, a structure that no longer fits, such as interest-only nearing its expiry or a loan with no offset.

Refinancing is not free, and break costs, fixed-rate exit fees and new-loan setup all factor in. A worthwhile review weighs the saving against those costs honestly. Investor policy considerations also feed in, including how borrowing capacity is assessed; our piece on negative gearing and borrowing capacity covers how the lending side has shifted for investors. Sometimes the answer is to do nothing, and a good broker will tell you that.

The investor-specific levers a review checks

Interest-only versus P&I. Interest-only keeps repayments lower now and some investors use it to hold deductible debt higher, though it costs more interest over time. Whether to re-set this is a structural decision, and the tax angle should be confirmed with your accountant or tax adviser, not assumed.

Offset. An offset account parks spare cash against the loan to reduce interest while keeping the funds available. Many older investor loans do not have one.

Equity recycling. Equity that has grown can often be released to fund the deposit on your next property without selling the current one.

Keeping the loan tax-clean. How you split, redraw and structure the loan affects deductibility, so confirm the treatment with your accountant before changing anything. For the policy backdrop, see our read on the Budget 2026 negative gearing and CGT changes.

Investor lending policy varies widely between lenders, on everything from how rent is shaded to LVR tiers and interest-only appetite. Comparing a panel of over 40 bank and non-bank lenders is how you find the one whose policy actually fits your situation, rather than defaulting to whoever holds the loan today.

Refinancing across a portfolio, and why your current bank may not be your best

Once you hold more than one investment property, a single lender's exposure limits and serviceability rules can quietly become the ceiling on your plans. Your current bank assessed you at a point in time and has little reason to volunteer a better rate later. It may also concentrate all your lending in one place, which can cap how much you can borrow for the next purchase.

Reviewing a portfolio as a whole, rather than one loan at a time, often reveals that splitting loans across different lenders frees up capacity and lands a better blended rate. Everstone is independent and Melbourne-based, working with investors across Australia. If any of the properties is commercial rather than residential, the assessment is different again, and our companion piece on reviewing your commercial property loan rate covers that side.

How Everstone helps

Ahmed Lotfi and Zappelin Heng are former bankers who now sit on your side of the table. We take the numbers you have already assembled for tax, check your current investor rate against a panel of over 40 bank and non-bank lenders, and tell you plainly whether a switch is worth it once costs are counted. If it is not, we say so.

Where it makes sense, we structure the loan around your wider plan: interest-only versus P&I, an offset, releasing equity for the next purchase, and keeping the structure clean. Our advice is free because the lender pays us, not you. New to refinancing? Start with refinancing in plain English. One note: we are mortgage brokers, not tax agents or accountants, so anything touching deductibility or negative gearing should be confirmed with your accountant or tax adviser. This is general information, not credit assistance; eligibility and lender criteria apply.

Investor refinance FAQs

What are investment property loan rates in 2026?

As an indicative 2026 guide, investor variable principal and interest rates sit in the low to mid 6% range, from around 6% p.a. for strong borrowers at lower LVRs, with fixed from around 6.2% p.a. Interest-only rates sit higher again. Investor rates sit above owner-occupier rates. Figures are indicative, vary by lender and borrower, and are subject to change.

When should I refinance my investment loan?

It is worth reviewing when your current rate sits well above the competitive band, when your equity has grown enough to reach a lower LVR tier, or when your structure no longer fits, such as interest-only nearing expiry or no offset. The review should weigh the saving against any break and setup costs. Sometimes the right answer is to stay put.

Does refinancing affect my tax deductions?

It can, because how a loan is split, redrawn and structured influences what interest is deductible. We are mortgage brokers, not tax agents, so this is something to confirm with your accountant or tax adviser before you make any change. The aim is to keep the loan structured cleanly so your deductibility position is not accidentally disturbed.

Interest-only or principal and interest for an investor?

Interest-only keeps repayments lower now and some investors use it to hold deductible debt higher, but it costs more interest over the life of the loan and the rate is usually higher. Principal and interest builds equity and typically carries a sharper rate. Which suits you depends on your cashflow and plan, and the tax angle should be confirmed with your accountant.

Can I use equity to buy another property?

Often yes. If your investment property has risen in value since you bought, the equity that has built up can usually be released to fund the deposit on your next purchase without selling the current property. How much you can access depends on the lender's LVR limits and your serviceability. A review checks whether your current lender or another one frees up the most capacity.

Does using a broker cost anything?

No. Everstone's advice is free to you because the lender pays us a commission when a loan settles, not you. That means we can compare a panel of over 40 bank and non-bank lenders and tell you plainly whether refinancing your investment loan is worth it, including when the honest answer is to leave it where it is.

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