Building a property portfolio in Queensland requires smart loan structuring from the start. The wrong loan can limit your borrowing capacity for the next property, expose you unnecessarily and cost you thousands in tax efficiency. Blambles helps investors get this right from day one.
A residential investment loan is used to purchase a house, unit or apartment that you intend to rent out to tenants — rather than live in yourself. Investment loans are assessed and priced differently from owner-occupier loans: lenders treat them as higher risk, which typically means slightly higher interest rates and potentially tighter assessment criteria.
Rental income from the property is included in the lender's serviceability assessment — though lenders typically apply a discount (often taking only 70–80% of the gross rent) to account for vacancy and expenses. This means the investment property partially services its own loan, which increases your overall borrowing capacity compared to a home loan alone.
One of the most important decisions for investment property finance is whether to use principal and interest (P&I) or interest-only (IO) repayments. Interest-only loans keep your repayments lower during the IO period, which can improve cash flow — but lenders have tightened IO policies significantly in recent years. Whether IO is available and at what rate varies considerably between lenders. Blambles can model both scenarios so you understand the genuine trade-offs for your situation.
Loan structure matters enormously for investors. Cross-collateralisation — where the lender holds security over multiple properties — might seem straightforward, but it can limit your flexibility to sell or refinance individual properties in the future. Keeping investment loans in separate, standalone structures gives you far more control as the portfolio grows. This is something Blambles is particularly focused on getting right from the outset.
IO periods reduce your repayments during the IO term, improving cash flow. Not all lenders offer IO for investment loans at competitive rates — Blambles identifies those who do.
Each investment property held against its own loan preserves your flexibility to sell, refinance or leverage individual properties independently as your portfolio grows.
Lenders include rental income in their serviceability calculations — Blambles ensures it's presented correctly to maximise your assessed borrowing capacity.
Holding surplus funds in an offset account against your investment loan reduces interest without reducing the loan balance — preserving tax deductibility of the interest.
With LMI, some lenders will lend up to 90% of an investment property's value — allowing you to enter the market with a smaller deposit and preserve cash for the next purchase.
Not all lenders are comfortable with multiple investment properties. Blambles knows which lenders support portfolio investors — and which will cut off your lending capacity early.
We start with a conversation about your existing properties, debt levels, income and long-term goals. This shapes the structure of the next loan — and every loan after it.
Not all lenders suit investors. We identify lenders who support portfolio growth, offer competitive IO pricing and won't cross-collateralise your properties unnecessarily.
We prepare the application — including rental income schedules, existing loan statements and property valuations — to present your serviceability position in the strongest light.
We review the approval terms to ensure the structure is right — including the loan account setup, repayment type and offset account configuration.
We manage settlement and check in periodically — because as your portfolio grows or rates change, there may be opportunities to restructure and improve your position.
Investment lending is where loan structure really matters. A broker who simply finds the lowest rate misses the point — the right loan for an investor is the one that doesn't create problems when you try to buy property number two or three. Blambles thinks about your full portfolio, not just the transaction in front of him.
Access to 40+ lenders means Blambles can match your portfolio strategy to lenders who actively support investors — rather than those who restrict IO periods, cap the number of investment properties they'll lend against or cross-collateralise everything by default. These policies aren't advertised; knowing them is part of what a good broker brings.
There is no cost to you as the borrower — and the advice you receive on loan structure can meaningfully affect your ability to grow your portfolio over the following decade.
Investment loans are assessed and priced differently — lenders consider them higher risk, which typically means higher interest rates (often 0.3–0.8% p.a. more than owner-occupier rates). Assessment also includes rental income as part of your serviceability. The loan features, repayment type options and lender policies differ too, which is why it's important to work with a broker who specialises in both types.
Interest-only repayments reduce your monthly repayments during the IO period, which can improve cash flow — and the interest remains fully deductible where the loan is used to generate assessable income. However, IO periods are typically limited to 5 years, after which the loan reverts to P&I. Whether IO is the right choice depends on your overall debt position, tax situation and investment strategy. Blambles can model both scenarios for your situation.
Negative gearing means the rental income from your investment property is less than the costs of holding it — including loan interest, rates, insurance and management fees. The net loss is deductible against your other income, reducing your overall tax. The tax effectiveness of negative gearing depends on your marginal tax rate, your debt levels and your long-term capital growth expectations. This is general information — always confirm your specific position with your accountant.
Investment loans typically require a minimum 10–20% deposit. Some lenders will lend at 90% LVR for investment properties (with LMI), but the pricing and policy around high-LVR investment lending is more restrictive than for owner-occupiers. Having 20% allows you to avoid LMI entirely. You may also be able to use equity in an existing property as your deposit — Blambles can help you explore this if it applies.
Cross-collateralisation means a lender holds security over multiple properties under a single lending relationship — essentially linking your properties together. While it can simplify things initially, it can significantly restrict your flexibility later: selling one property may require the lender's approval and potentially a partial debt repayment, and refinancing one loan means refinancing all of them. Most experienced property investors prefer standalone loan structures for each property.
Free consultation, no obligation. Blambles will review your situation, discuss your portfolio strategy and find the right loan structure for your next purchase.