Interest Only Loans for Investors in Logan, QLD, The 2026 Guide

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 shapes your interest only terms and ongoing costs.

Cube Home 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 the FHOG, the Australian Government 5% Deposit Scheme 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: individuals who hold a property for more than 12 months can generally apply the 50% CGT discount when they sell, reducing their capital gains tax liability.
• Depreciation deductions: building and fixture depreciation can be claimed annually, providing additional tax benefits during ownership.

Tax rules depend on your circumstances, so check how these apply to you with your accountant.

• Cube Home Loans Like to know which lenders offer interest only terms that suit investors? Interest only terms 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, with no commitment and 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

We compare interest only terms, what the loan reverts to, and ongoing fees and features across our panel. The interest only period is temporary, so what happens after it ends matters as much as the starting terms.

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 period without considering what the loan reverts to. 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. What the loan reverts to sets your costs for the rest of the loan term, so it is worth checking before you sign.

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 increases your monthly repayments, because you start paying down the loan over a shorter remaining term. Planning for this early gives you time to budget, review your options or refinance on your own timeline.

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

Because you're not paying down the principal during the interest only period, your interest payments, and the deductions that may come with them on an investment loan, stay higher throughout that period. Your accountant can confirm how this works for your situation.

From a cash flow perspective, interest only repayments are lower than principal and interest repayments on the same loan, and that monthly difference can help a property's cash flow, especially in suburbs like Eagleby where rental yields are stronger.

• Investment loan structuring: keeping investment debt separate from personal debt gives you cleaner records for your accountant and 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: your accountant or a quantity surveyor can tell you what depreciation may be available in the early years of ownership.

• Cube Home 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. Longer interest only periods are usually priced higher.

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 a 10% deposit, usually with LMI and tighter conditions.

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, so it pays to budget for this 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?

Usually, yes. Lenders generally price interest only loans higher than principal and interest loans, reflecting the higher risk they associate with interest only lending. A broker can compare the difference across lenders for you.

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 lenders have tightened interest only lending, while others still offer interest only products for investors.

Can I claim all the interest payments as tax deductions?

Interest on a loan used to buy a rental property is generally deductible while the property is rented or genuinely available for rent, both during the interest only period and after it reverts to principal and interest. Check your situation with your accountant.

Your Next Steps

Getting your interest only loan structure right affects your cash flow, tax position, and long-term investment returns. Lenders differ on pricing, serviceability assessments and what happens when your interest only period ends, and those differences add up over the life of your investment strategy.

Ready to find out which lenders offer interest only terms that suit 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 Home 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. · Last updated October 2026