No Australian state has cheaper home loan rates than another: lenders price investment loans nationally, so the same borrower gets the same rate in Perth or Hobart. What differs by state is everything around the loan: stamp duty, land tax, rental laws and how property prices are moving. Those costs, plus a lender’s policy for the specific postcode, decide where an investment works best for you, not the headline rate.
Do home loan rates differ between states?
The major banks and most other lenders use one national rate card. Your investor rate depends on your loan, not your state:
| What sets your rate | What doesn’t |
|---|---|
| Loan purpose (investor or owner-occupier) | The state or territory you buy in |
| Repayment type (principal and interest or interest-only) | The city vs suburb, in most cases |
| LVR (how much you borrow against the property value) | |
| Loan size and any package discount |
As at 2 October 2026, the average investor variable rate was 6.89% and the lowest advertised was around 5.94%, according to Canstar. Those figures apply nationally.
Where location does matter is lending policy. Some lenders cap the LVR in smaller regional towns or mining towns, or for small and high-density apartments. That can mean a bigger deposit or lenders mortgage insurance, even though the rate itself is unchanged. Policy varies widely from lender to lender, so it pays to check before you commit to a property.
What does differ: state costs for investors
| Cost | How it varies by state |
|---|---|
| Stamp duty (transfer duty) | Every state and territory charges it on purchases, with its own rates and thresholds. Investors generally can’t use first home buyer concessions. |
| Land tax | Charged on investment property in every state and the ACT, with different thresholds and rates. The Northern Territory has no land tax. |
| Foreign buyer surcharges | Extra duty and land tax for foreign buyers in most states. |
| Rental laws | Rules on rent increases, minimum standards and ending leases differ by state and affect running costs. |
| Grants and concessions | First home buyer grants and stamp duty breaks are for owner-occupiers, not investors. |
Because duty and land tax rates change often, use your state revenue office’s calculators for current figures before you buy.
How each market is moving
Property prices have diverged sharply as rates rose through 2026. In the year to September 2026:
| Market | Annual change in home values |
|---|---|
| Darwin | +11.9% |
| Perth | +10.1% |
| Combined regional markets | +5.6% |
| Canberra | -1.6% |
| Melbourne | -6.2% |
| Sydney | -7.0% |
| National | 0.0% |
Source: Cotality Home Value Index, September 2026.
Cheaper markets with strong rent growth have held up best as borrowing power fell, while the most expensive markets have fallen furthest. Past growth doesn’t predict future growth, but it shows how much your results depend on where you buy and when.
Federal tax changes apply everywhere
The negative gearing and capital gains tax changes passed in June 2026 apply in every state. From 1 July 2027, losses on established residential property bought after 7.30 pm AEST on 12 May 2026 can only be offset against residential property income, and the 50% CGT discount is replaced by indexation with a 30% minimum tax on gains from that date. Eligible new builds keep negative gearing in every state.
Matching lender to location
- Check the postcode first. Ask whether the lender has LVR limits for the suburb or property type before you sign a contract.
- Compare the total cost of buying, including duty and land tax, not just the purchase price.
- Factor land tax into your yield. A property with a higher rent can still return less after land tax in a state with a low threshold.
- Think about your whole portfolio. Land tax is usually assessed per owner across all your land in a state, so spreading purchases across states can reduce it. Get tax advice for your situation.
Frequently asked questions
Do home loan rates differ between states?
No. Australian lenders set investment loan rates nationally, based on your loan purpose, repayment type, LVR and loan size. What changes between states is lending policy for some postcodes and property types, and state taxes such as stamp duty and land tax.
Which state has the lowest stamp duty for investors?
There isn’t one answer, because each state’s duty scale is different and the cheapest state depends on the purchase price. Duty rates and thresholds also change regularly. Use each state revenue office’s duty calculator for the price you’re paying to compare.
Does land tax affect how much I can borrow?
It can. Lenders assess your ongoing property costs, and some include land tax in your expenses, which reduces your borrowing capacity. Land tax also lowers your net rental return, so include it when you work out whether a property’s cash flow suits you.
Sources
- Canstar, Average home loan interest rates, as at 2 October 2026
- Cotality, Australian housing values down for sixth straight month in September, 1 October 2026
- Australian Government, Negative Gearing and Capital Gains Tax Reform, Budget 2026-27
General information only. It does not consider your objectives, financial situation or needs and is not credit, tax or financial advice.