Investment Loans in North Brisbane
North Brisbane presents strong opportunities for property investors, with a combination of rental demand, infrastructure development, and capital growth potential. Home Loan Broker North Brisbane connects investors with specialist brokers who understand investment lending structures and have access to over 100 lenders.
Why Invest in North Brisbane Property?
North Brisbane suburbs have attracted growing investor interest. Areas like Chermside benefit from major retail and health infrastructure, while suburbs such as Mitchelton offer proximity to transport corridors and lifestyle amenities. Rental vacancy rates across North Brisbane have remained tight, supporting strong rental yields.
Key investment drivers in the region include:
- Infrastructure — Brisbane Metro, Cross River Rail, and suburban road upgrades
- Population growth — Queensland’s sustained interstate migration
- Rental demand — Low vacancy rates across most North Brisbane suburbs
- Affordability — Entry prices remain accessible compared to Sydney and Melbourne
- Diverse property types — Houses, townhouses, and units at various price points
Investment Loan Structures
Investment lending differs from owner-occupied lending. Your broker will recommend structures aligned with your investment strategy:
Interest-Only Loans
Interest-only periods (typically one to five years) reduce your repayment obligation, improving cash flow. This is particularly useful for negatively geared properties where holding costs are offset against taxable income. Not all lenders offer the same interest-only terms or rates for investors.
Principal and Interest
Some investors prefer to build equity faster with principal and interest repayments, especially for positively geared properties or those approaching retirement.
Equity Access
If you own property with available equity, a broker can help you access that equity to fund deposits on additional investment purchases. This avoids the need to save separate deposits for each property. Lenders typically allow borrowing up to 80% of the property value without LMI.
Portfolio Lending
Investors with multiple properties require careful structuring. Cross-collateralisation (where one lender holds security over multiple properties) can create risk. Experienced brokers typically recommend standalone security structures, using different lenders where appropriate to manage risk and maintain flexibility.
APRA Regulations and Investor Lending
The Australian Prudential Regulation Authority (APRA) sets guidelines that affect investor lending. Lenders apply serviceability buffers (currently 3% above the loan rate) when assessing borrowing capacity. Different lenders interpret APRA guidelines differently, which is why access to multiple lenders through a broker is valuable for investors.
Negative Gearing and Tax Considerations
When your investment property expenses (including loan interest) exceed rental income, the loss can be offset against your other taxable income. This is known as negative gearing. Your broker structures loans to maximise deductibility — for example, ensuring investment debt is separated from owner-occupied debt.
Note: tax advice should come from a qualified accountant or tax agent. Your broker focuses on loan structuring that supports your tax strategy.
Rental Yields in North Brisbane
North Brisbane offers competitive gross rental yields compared to inner-city Brisbane:
- Units in suburbs like Chermside, Nundah, and Kedron offer yields of approximately 4.5% to 5.5%
- Houses in Aspley, Stafford, and Everton Park typically yield 3.5% to 4.5%
- Townhouses across the region often sit between house and unit yields
Actual yields depend on purchase price, rental market conditions, and property specifics. Your broker can refer you to local property managers for rental appraisals.
Lenders for Investment Loans
Our brokers compare investment loan products from:
- Major banks — CBA, Westpac, NAB, ANZ (each with different investor policies)
- Regional banks — Suncorp, BOQ, Bankwest (often competitive on investor rates)
- Non-bank lenders — Pepper Money, Liberty Financial, La Trobe Financial (useful for complex situations)
Lender appetite for investment lending varies. Some lenders restrict interest-only terms, others limit lending in certain postcodes or for certain property types. A broker navigates these nuances.
Frequently Asked Questions
Can I use equity in my home to buy an investment property?
Yes. If your owner-occupied property has grown in value, a broker can arrange an equity release to fund the deposit and costs on an investment purchase. This avoids the need to save a separate cash deposit.
What deposit do I need for an investment loan?
Most lenders require a minimum 10% deposit for investment loans, with 20% avoiding LMI. Some lenders accept 5% but charge higher LMI premiums for investors.
Should I use interest-only or principal and interest?
This depends on your investment strategy, cash flow position, and tax situation. Many investors start with interest-only to maximise cash flow and negative gearing benefits, then switch to principal and interest later. Your broker and accountant can advise on the optimal approach.
Can I borrow through a trust or company structure?
Yes. Some lenders accept borrowing through trusts, companies, or self-managed super funds (SMSFs). The lending criteria and rates differ from personal borrowing. A broker experienced in investment lending can identify suitable lenders.
How many investment properties can I finance?
There is no set limit, but each additional property affects your serviceability. Lenders assess your total debt, rental income, and personal income when determining capacity for further lending. Portfolio structuring by an experienced broker helps maximise your borrowing capacity.
Get Connected with an Investment Lending Specialist
Whether you are purchasing your first investment property or expanding a portfolio, connect with a broker who specialises in investor lending. Explore our home loans and refinancing pages for related services.
Home Loan Broker North Brisbane is a broker introduction service. We connect you with qualified mortgage brokers holding Australian Credit Licences. Investment lending involves risk. Property values and rental income may fluctuate. Seek independent financial and tax advice.
