Which Australian States Offer the Best Home Loan Deals for Property Investors?
For Australian property investors, the home loan rate you secure isn’t just a footnote on the paperwork — it’s a key driver of your cash flow, profitability, and long-term portfolio success.
While many investors are savvy enough to shop around between lenders, what’s often overlooked is how much loan deals can vary depending on the state or territory you’re investing in.
Yes, you read that right: lender policies, rates, risk appetites, and even incentives can change depending on whether you’re buying in Sydney, Melbourne, Brisbane, or a quiet regional town in Tasmania. Knowing where to look — and how to match the right lender to the right location — can unlock lower borrowing costs, boost your yields, and strengthen your investment strategy.
In this comprehensive guide, we’ll break down:
- Why home loan rates and lending policies differ across states
- How lender preferences stack up across Australia
- State-based taxes, incentives, and hidden costs
- A detailed state-by-state lending guide for investors
- The best current loan deals by state
- Expert tips for matching your investment with the right lender
By the end, you’ll have a sharper eye for the deals that matter — and a playbook for maximising your investment finance.
Why Do Home Loan Rates and Lending Policies Vary by State?
Many investors assume that major lenders apply one-size-fits-all policies nationwide. In reality, banks, non-bank lenders, and credit unions tailor their loan offerings based on local market conditions, property risk profiles, and borrower demand in each state.
Here’s why that matters:
Property Market Conditions
States with booming capital cities, strong population growth, and robust rental demand often get better loan terms. Lenders see these areas as lower risk, which can translate into higher loan-to-value ratios (LVRs) and sharper rates. In contrast, states or regions with high vacancy rates, price volatility, or a history of downturns may attract tighter lending standards.
Postcode Risk Assessments
Lenders maintain restricted postcode lists — essentially watchlists of suburbs or towns where lending is capped or declined altogether. Mining towns, remote areas, and apartment-heavy precincts can all end up on these lists, impacting the LVRs and rates on offer.
State-Specific Taxes and Incentives
Stamp duty, land tax, and first-home or regional incentives vary between states. Lenders factor these additional costs into their serviceability calculations and risk models, which can influence how much they’ll lend and at what price.
Lender Preferences and Typical Rates by State
Here’s a snapshot of how lenders currently approach each Australian state and territory (as of March 2025):
| State/Territory | Risk Profile | Common LVR Limit | Investor Rates From |
| NSW (Sydney, Regional) | Mixed — strong demand but affordability concerns | 80–90% metro, stricter in regions | 6.29% p.a. |
| VIC (Melbourne, Regional) | High demand, oversupply risks in some apartments | 80–90% metro, cautious on off-the-plan | 6.25% p.a. |
| QLD (Brisbane, Coastal) | Positive — SEQ booming, cautious on regions | 80–90% metro, 70–80% regional | 6.34% p.a. |
| SA (Adelaide, Regional) | Stable — low-risk capital, varied regions | 80–90% metro, 70–80% regional | 6.39% p.a. |
| WA (Perth, Regional) | Cautious — Perth recovering, regions volatile | 80% metro, ~70% regional | 6.45% p.a. |
| TAS (Hobart, Regional) | Mixed — Hobart strong, regional less favoured | 80% metro, 70–80% regional | 6.49% p.a. |
| ACT (Canberra) | Low risk — stable employment, demand | Up to 90% metro | 6.25% p.a. |
State-by-State Lending Guide for Property Investors
New South Wales (NSW)
- Overview: Sydney draws lender attention, but stretched affordability limits LVRs in some areas. Regional NSW has mixed lender appetite.
- Policies: 80–90% LVR in metro; capped at 70–80% in select regional areas; postcode restrictions for new high-rise developments.
- Investor Rates: From 6.29% p.a.
Victoria (VIC)
- Overview: Melbourne’s demand keeps lenders engaged, though off-the-plan apartments have become a caution zone.
- Policies: Up to 90% LVR in established suburbs; stricter limits in oversupplied postcodes; regional appetite varies.
- Investor Rates: From 6.25% p.a.
Queensland (QLD)
- Overview: Brisbane, Gold Coast, and Sunshine Coast are lender favourites; mining and remote regions get tighter treatment.
- Policies: 90% LVR in major hubs; 70–80% in smaller towns; competitive SEQ rates.
- Investor Rates: From 6.34% p.a.
South Australia (SA)
- Overview: Adelaide’s steady growth makes it attractive to conservative lenders.
- Policies: 90% LVR metro; 80% or less regional; competitive rates due to low volatility.
- Investor Rates: From 6.39% p.a.
Western Australia (WA)
- Overview: Perth is bouncing back, but regional WA (especially mining) remains high-risk.
- Policies: 80% metro, ~70% regional; mining towns often excluded from lending.
- Investor Rates: From 6.45% p.a.
Tasmania (TAS)
- Overview: Hobart remains solid; smaller regional towns are approached with caution.
- Policies: 80% metro; 70–80% regional with stricter servicing.
- Investor Rates: From 6.49% p.a.
Australian Capital Territory (ACT)
- Overview: Canberra’s public sector underpins demand and low risk.
- Policies: Up to 90% LVR; minimal postcode restrictions.
- Investor Rates: From 6.25% p.a.
State-Based Incentives, Taxes, and Borrowing Costs
While loan rates matter, so do state-based taxes and incentives that directly affect your bottom line.
- Stamp Duty
- NSW, VIC: Among the highest, with foreign buyer surcharges.
- QLD: Lower upfront duty, but rising land tax.
- SA, WA, TAS: More affordable entry.
- ACT: Gradually shifting from stamp duty to a land tax model.
- Land Tax
- NSW, VIC: Substantial costs on large portfolios.
- QLD: Recently included interstate land holdings.
- SA, TAS, WA: More forgiving thresholds.
- ACT: Applies to all rental properties.
- Incentives
- QLD, WA, SA: Regional development grants.
- ACT: Land rent programs to boost affordability.
Top Home Loan Deals by State (On Average)
| State | Lender | Product Name | Investor Rate (Variable, P&I) |
| NSW | Macquarie Bank | Basic Investor Variable | 6.29% p.a. |
| VIC | ING | Mortgage Simplifier Investor | 6.25% p.a. |
| QLD | Westpac | Flexi First Investor | 6.34% p.a. |
| SA | ANZ | Simplicity PLUS Investment | 6.39% p.a. |
| WA | Commonwealth Bank | Standard Variable Investor | 6.45% p.a. |
| TAS | Suncorp | Back to Basics Investor | 6.49% p.a. |
| ACT | Athena | Investor Variable Loan | 6.25% p.a. |
Expert Tips for Matching Lender to Location
- Check Postcode Blacklists
- Before you commit, check whether your chosen suburb appears on a lender’s restricted list.
- Confirm LVR Flexibility
- Not all lenders offer high-LVR loans in all regions. Ask upfront if you’re borrowing over 80%.
- Consider Niche Lenders
- Some non-bank lenders or mutuals specialise in regional loans or unconventional properties.
- Account for Local Taxes
- Factor stamp duty, land tax, and fees into your yield calculations to avoid surprises.
- Leverage a Local Mortgage Broker
- An experienced broker who knows the local lender landscape can help you avoid costly mistakes.
Final Take: Choose the Right Loan for the Right Location
The best home loan for your investment isn’t just about the lowest rate — it’s about finding a lender who understands the risks and opportunities in your target market. By understanding state-by-state differences, comparing offers carefully, and using the right professional guidance, you can secure a mortgage that supports your investment strategy and maximises your returns.
If you want tailored help comparing lenders across Australia, consider partnering with a broker who specialises in investment lending. They can help you navigate postcode restrictions, secure the best rates, and structure your loans to grow your portfolio efficiently.
