Fixed rate
Certainty on repayments for a set term, generally the cheapest option for that term. Most investors split across two or three terms so portions roll off at different times, rather than refixing an entire portfolio all at once.
The basics
What Is An Investment Property Loan?
Same mortgage mechanics, different lender treatment.
An investment property loan is a mortgage on a property you don't live in, taken out to earn rental income, capital growth, or both.
The mechanics are the same as any other mortgage. What's different is how a lender treats the application. Rental income only partly counts towards your servicing. The deposit bar sits higher.
Run your numbers with us before you start looking at listings, so you know where you stand.
★★★★★ "She explained each step of the process really clearly and helped us apply for a home loan with the banks." Toni, Google review
Deposit and LVR
How Much Deposit Do I Need For An Investment Property?
Most banks want 30% for an existing property. New builds are the exception.
Most banks want 30% for an existing property, and there's a limited pool of lending above that. On the Auckland region's July 2026 median of $940,000, 30% is $282,000. That's the Reserve Bank's loan-to-value setting doing the work: banks can only write up to 10% of new investor lending above 70% LVR, so the pool of low-deposit investor lending is genuinely small.
Auckland median, July 2026$940,000
Typical investor deposit30%
Deposit on an existing property$282,000
New builds are the exception. A construction loan, or a new build bought from the developer within 6 months of the Code Compliance Certificate (CCC) being issued, sits outside both the LVR restrictions and the debt-to-income restrictions. Read more about our construction loans.
Individual banks can also apply their own criteria on top of the Reserve Bank's minimum, particularly on apartment size, location or property type. We know which lenders are strict and which aren't, before you put down a holding deposit.
Using your equity
How Do I Use The Equity In My Existing Home To Buy A Rental?
This is how most first rentals get funded in New Zealand, more often than a savings account.
Usable equity is the gap between what your existing property is worth and what you owe on it, minus whatever the bank needs to keep you inside its lending limits. It isn't the whole gap.
There are two ways to put that equity to work, and the choice matters more than most investors realise.
Standalone security
You release equity from your existing property as a top-up loan, then use it as the deposit on the new one, often with a different lender. Each property and each loan stands on its own. Selling or refinancing one doesn't touch the other.
Cross-collateralisation
One lender secures the whole purchase against both properties at once. This option is often preferred by clients that want to keep all lending with one bank.
Loan structure
What Loan Structure Suits An Investment Property?
The rate gets all the attention. The structure is usually worth more over the term of the loan.
Floating (variable) rate
Costs more day to day, but lets you make unlimited extra repayments or restructure without a break fee. Useful on the portion of a portfolio you expect to sell or refinance.
Interest-only
You pay the interest and none of the principal for a set period, subject to the lender's approval. It maximises cash flow while you're growing a portfolio, at the cost of the loan balance not reducing. Most investors run at least part of a rental on interest-only. Talk to us about whether that fits where you're trying to get to, beyond this year's cash flow.
Revolving credit or offset
Rental income sits against the loan and reduces the interest charged daily, while the rest of the lending stays on cheaper fixed terms. Can be effective for investors that want to keep funds aside for property maintenance and/or potential gaps in tenants.
Tax basics
What Are The Tax Basics I Need To Know Before I Buy?
This is general information, not tax advice. Talk to your accountant about your own situation before you rely on any of it.
Interest deductibility
From 1 April 2025, mortgage interest on a residential rental is 100% deductible against your rental income again, on both existing and new build properties.
Rental loss ring-fencing still applies
A loss on a rental can only offset future rental income, not your salary or wages. The interest deductibility rule didn't remove this.
Depreciation
You can't depreciate a residential building itself. Chattels and fit-out inside it, carpet, appliances, curtains, are still depreciable.
The bright-line test is 2 years
It applies to any residential property sold on or after 1 July 2024, whatever the purchase date. The trigger is the date you sell, not the date you bought.
Timing it right
When Investment Lending Isn't The Right Move Yet
If the numbers don't work, we'll tell you before you go to the trouble of an offer, not after.
If your existing home has little to no usable equity, if your income is already stretched against your current mortgage, or if you'd be relying on rental income covering every dollar of the new repayment with no buffer for a vacant month, it's worth waiting and building the position properly instead of forcing a purchase now.
A rental that's cashflow negative from day one with no plan for that is a real risk, not a detail.
How we help
How We Help You Buy An Investment Property
Four things we do on every investor file.
- We work out your real usable equity first, based on your property value and your actual lending limits.
- We compare multiple banks and non-bank lenders, including the ones that treat rental income more generously than others.
- We structure the lending to suit your scenario, whether that is standalone security or keeping everything with one lender.
- We stay on it after settlement, checking your structure against your goals as your portfolio grows, beyond the one deal.
Know where you stand before you make an offer.Call us on 022 305 5696 or send your details through and we'll come back to you today.
Client stories
What Our Auckland Clients Say About Working With Us
5.0
Rated 5.0 on Google from 150+ reviews
Read all reviews
Bax5 months ago
Sarah is super helpful and easy to work with, she actively communicated and answered all of my silly questions quickly. Highly recommend her for first home buyers and buyers in general. Great to work with and very informed!
Helene McDonagh7 months ago
Sarah was absolutely amazing in guiding us through the process as first home buyers. She truly went above and beyond, taking the time to answer all of our (sometimes silly!) questions and making sure we felt supported every step of the way. She was always available to help, even on weekends, whether by call or text, which made such a stressful process feel so much easier. We would highly recommend Sarah and couldn’t have asked for a better experience.
Toni Tittleton10 months ago
Sarah been amazing to deal with! She has helped my partner and I get into our first home. She answered all our thousands of questions! Which really helped us understand the process :) (thanks Sarah!!)
Rashmika Gajjara year ago
I had the pleasure of working with Sarah as my mortgage advisor for purchasing my first home, and I couldn’t be more grateful for her support throughout the process. From the very beginning, she was extremely helpful and transparent, explaining every detail in a way that made everything clear and easy to understand. I thought it would be a stressful and overwhelming experience but it was smooth and straightforward thanks to her guidance. She made the whole journey feel effortless. I would highly recommend Sarah to anyone looking for a reliable and supportive mortgage advisor.
CourtNZa year ago
Sarah has gone above and beyond for us and has been an amazing support while we were buying our first home! She was always available to answer any of our weird and wonderful questions and was super knowledgeable about all aspects of the process. We cannot thank her or recommend her enough! Thanks Sarah :-)
Poppy Maya year ago
Sarah was awesome to deal with and helped us get into our first home :) She was super flexible with meeting times and uses google meets so that we could take the meeting from anywhere. Sarah is super friendly and no question was a dumb question for her, which made us feel really comfortable. She explained each step of the process really clearly and helped us apply for a home loan with the banks, fix our home loan and will be following us up when its time to re-fix. 10/10!
Can I use the equity in my own home instead of a cash deposit?
Usually, yes. Many first rentals in New Zealand are funded this way. The lender assesses your existing property value and loan balance to work out what is usable.
Do I have to fix the whole loan for the same term?
No. Most investors split a loan across two or three fixed terms, or run part of it on revolving credit or offset, so the whole portfolio isn't exposed to one rate decision at once.
Is interest-only allowed on an investment property?
Usually, subject to the lender's approval. It's common on rentals and keeps cash flow higher while the loan balance stays the same. It needs a genuine reason and a plan for what happens when the interest-only period ends.
Can I claim the interest as a tax deduction?
Yes. From 1 April 2025, mortgage interest on a residential rental is 100% deductible against rental income again. This is general information, not tax advice. Check your own position with your accountant.
What's the difference between cross-collateralisation and standalone lending?
Cross-collateralisation secures the lending against two or more properties with one lender. Standalone lending keeps each property and each loan separate, often across different lenders. Which suits you depends on your scenario, and we go through both options with you.
Does it cost anything to use an adviser instead of going straight to a bank?
Usually no. We're paid by the lender you choose, not by you. In a small number of situations a fee applies, and we'll always tell you before any work starts. It's all set out in our disclosure statement.
Next step
Know Where You Stand Before You Make An Offer
In most cases our advice costs you nothing. We're paid by the lender you choose. In a small number of situations a fee applies, and we'll always tell you before any work starts. We're paid much the same whichever lender you go with, so the recommendation is about the loan, not the commission.
We're available 8am to 8pm, seven days. No obligation, and nothing gets submitted to a lender without your say-so. We'll come back to you the same working day. The first conversation takes 20 minutes, and you'll leave it knowing your number.
This page provides general information only. It isn't personalised financial, legal or property advice. Lending criteria, interest rates and regulations can be updated. Any loan is subject to lender assessment and approval.