Investment Loan vs. Home Loan


  • Investment Loan: Specifically for purchasing properties intended to generate income or increase in value.
  • Home Loan: Designed for buying or building your primary residence.

Interest Rates

  • Investment Loan: Often has higher interest rates due to perceived higher risk.
  • Home Loan: Typically features lower interest rates, reflecting its lower risk to lenders.

Tax Implications

  • Investment Loan: Interest and associated costs can be tax-deductible as they are considered investment expenses.
  • Home Loan: Generally, the interest is not tax-deductible, except under specific circumstances like using part of the home for business.

Loan Features

  • Investment Loan: May include features like interest-only payments to maximize cash flow.
  • Home Loan: Often includes options like redraw facilities and offset accounts to help reduce interest.

Choosing between an investment loan and a home loan depends on the purpose of the property purchase. Understanding these key differences aids in making an informed financial decision tailored to your goals.