In 2026, Logan, QLD property investors have access to interest only loan products that can significantly improve cash flow and investment returns. Whether you're a seasoned investor adding to your portfolio or buying your first investment property, interest only repayments reduce your monthly commitment and can make the difference between positive and negative gearing.

The key advantage of interest only loans is immediate cash flow relief — you're only paying the interest portion for a set period, typically 5 years, which can free up hundreds of dollars per month to reinvest or cover other expenses. Whether you're buying in Browns Plains - Beenleigh or Loganholme , the right lender choice determines your interest only terms and ongoing rates.

Cube Loans helps property investors across Logan, QLD compare interest only loan options across 60+ lenders, completely free of charge.

Here's what Logan investors need to know about interest only loans in 2026.

How do interest only investment loans work?

Interest only loans let you pay just the interest portion for a set period, typically 5 years, before reverting to principal and interest repayments. For investors, this means lower monthly repayments during the interest only period, which improves cash flow and can turn a negatively geared property into a positively geared one. At the end of the interest only term, your loan reverts to standard principal and interest repayments for the remaining loan term.

What government schemes apply to property investors in Logan, QLD?

• No first home buyer schemes: investment property purchases exclude you from FHOG, First Home Guarantee, and other first home buyer benefits — even if it's your first property purchase.
• Negative gearing tax benefits: losses from your investment property (including interest payments) can be claimed against your other income, reducing your tax liability.
• Capital gains tax concessions: properties held for more than 12 months qualify for the 50% CGT discount when you sell, reducing your capital gains tax liability.
• Depreciation deductions: building and fixture depreciation can be claimed annually, providing additional tax benefits during ownership.

• Cube Loans Like to know which lenders offer the best interest only terms for investors? Interest only terms and rates vary significantly between lenders, and some lenders have tighter serviceability rules for investors. A free chat with a Logan mortgage broker gives you a clear picture — no commitment, no pressure. Free 15-min chat 60+ lenders No obligation Book a free chat today →

How do lenders assess investment loan applications with interest only repayments?

Step 1: Talk to us

Get in touch and we'll assess your investment strategy, existing properties, and which lenders offer the most suitable interest only terms for your situation.

Step 2: Income and serviceability assessment

We gather your income documentation and calculate your serviceability across multiple lenders. Investment loans require higher serviceability buffers, and lenders assess your ability to service principal and interest repayments, even during the interest only period.

Step 3: Property selection and rental assessment

We help coordinate property valuations and rental assessments. Most lenders accept 75-80% of expected rental income in their serviceability calculations, which varies between lenders and affects your borrowing capacity.

Step 4: Deposit and equity position

We structure your deposit using available cash, equity from existing properties, or a combination. Interest only loans typically require larger deposits than owner-occupier loans, with most lenders requiring at least 20% down.

Step 5: Lender comparison and rate negotiation

We compare interest only rates, revert rates, and ongoing terms across our panel. The interest only period is temporary, so the revert rate and ongoing relationship matter as much as the initial rate.

Step 6: Settlement and ongoing support

We coordinate with your solicitor, property manager, and accountant to ensure a smooth settlement. Our relationship continues after settlement for refinancing reviews and portfolio expansion.

What mistakes do Logan property investors make with interest only loans?

The biggest mistake is focusing only on the interest only rate without considering the revert rate. Most investors get caught up in the lower repayments during the interest only period but don't factor in what happens when the loan reverts to principal and interest after 5 years. That revert rate — often 0.5% to 1% higher than the initial rate — determines your costs for the remaining 20+ years of the loan.

The second common mistake is not planning for the payment increase when the interest only period ends. Going from interest only to principal and interest can increase monthly repayments by $500-800 on a typical $600,000 investment loan. Investors who haven't budgeted for this increase often find themselves refinancing under pressure rather than by choice.

How do interest only loans affect your tax position and cash flow?

Interest only loans maximise your tax-deductible interest payments, which is particularly valuable for investors in higher tax brackets. Because you're not paying down the principal during the interest only period, your interest payments — and therefore your tax deductions — remain at the maximum level throughout that period.

From a cash flow perspective, interest only repayments on a $600,000 investment loan at 5.38% p.a. are approximately $2,690 per month, compared to $3,460 per month for principal and interest repayments. That $770 monthly difference can turn a negatively geared property into positive cash flow, especially in suburbs like Eagleby where rental yields are stronger.

• Investment loan structuring : separating investment debt from personal debt maximises tax deductibility and provides cleaner records for the ATO.
• Offset account benefits: any surplus cash in an offset account reduces the interest you pay without affecting the tax-deductible nature of the loan.
• Depreciation scheduling: combining interest only loans with depreciation deductions can create significant tax benefits in the early years of ownership.

• Cube Loans Ready to find out which interest only structure suits your investment strategy? We compare loans from 60+ lenders across Logan, QLD. Free service, no cost to you. Free 15-min chat 60+ lenders No obligation Book a free chat today →

Frequently Asked Questions

What's the maximum interest only period available?

Most lenders offer 5-year interest only periods, with some extending to 10 years for established investors with strong serviceability. The longer the interest only period, the higher the rate premium typically applies.

Do I need a larger deposit for interest only investment loans?

Yes, most lenders require at least 20% deposit for interest only investment loans, compared to 10% for some owner-occupier products. Some lenders will go to 10% deposit but charge significantly higher rates and LMI.

What happens when the interest only period ends?

Your loan automatically converts to principal and interest repayments at the revert rate for the remaining loan term. Your monthly repayments will increase by approximately 25-30%, which you need to budget for in advance.

Can I extend the interest only period?

Some lenders allow extensions subject to serviceability assessment and property revaluation. However, it's not guaranteed, so you should plan for principal and interest repayments when the current interest only period ends.

Are interest only rates higher than principal and interest rates?

Yes, interest only rates are typically 0.2% to 0.5% higher than principal and interest rates from the same lender. This rate premium reflects the higher risk lenders associate with interest only lending.

Should I use a mortgage broker or go to my bank for interest only investment loans?

A mortgage broker, every time. Interest only terms, serviceability rules, and rental income assessments vary dramatically between lenders. Some banks have tightened interest only lending significantly post-Banking Royal Commission, while others maintain competitive products for investors.

Can I claim all the interest payments as tax deductions?

Yes, all interest payments on investment property loans are tax-deductible, provided the property is genuinely available for rent. This includes interest during the interest only period and after the loan reverts to principal and interest.

Your Next Steps

Getting your interest only loan structure right affects your cash flow, tax position, and long-term investment returns. The difference between lenders can mean thousands of dollars in rate premiums, different serviceability assessments, and varying terms when your interest only period ends — all factors that compound over the life of your investment strategy.

Ready to find out which lenders offer the most competitive interest only terms for your investment goals? Contact Scott Beattie or Nevada Matthews for a free consultation or call 1800 774 756. We'll compare your options across 60+ lenders and structure the most suitable solution for your investment portfolio.

Cube Loans · Loganholme and Logan, QLD · General information only — this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.