Loan options & structuring

You may choose to structure your investment property loan a little differently from your own home loan, and you’ve got the flexibility to do so with Westpac’s various home loan options. Our Investment Property Lending Specialists are here to help advise on home loan options when you need them, and can visit you to talk through setting up your investment property’s loan structure.

Why choose Westpac?

Meet our Investment Property Lending Specialists

Sometimes you just want face-to-face help from a person who knows their stuff – and that’s when you can arrange for one of our Investment Property Lending Specialists to visit you. Located around the country, they can come to you anywhere, on any day of the week between 7:30am and 10pm. Everyone in our team is experienced in helping customers with their borrowing options, and many of them are landlords themselves.

How can they help?

When our Investment Property Lending Specialists come to visit, they can:

  • share their expertise and up-to-date knowledge on investment property lending 
  • review your financial situation in context of home loan options
  • explain our range of home loan products suitable for property investment
  • advise on loan structure and repayment options
  • introduce you to useful people within their strong local networks, such as accountants, lawyers, property managers etc
  • share Westpac's tools, calculators and reports to empower you to make better decisions
  • bring in our specialist Wealth Advisers if you'd like help with your financial and investment planning.


Why keep all your home loans with Westpac?

Having a single view of your finances can help us set you up with the best overall loan structure to suit you and your situation. It also enables us to make faster decisions when it comes to approving new loan applications. We can also access more competitive pricing for you, as we can negotiate deals based on your total relationship with us.

Amazing tools, products and resources for residential property investors

We've got so much great stuff for residential property investors including a whole page of resources that will show you where to go to get help from the right people.

  • Calculators for property investors: like our “What might my return be?” calculator
  • Access accounts with no account maintenance fees* for every property you have mortgaged with Westpac that has $100,000 of lending: to help make management of your property’s finances clear and easy
  • A range of home loan solutions with flexibility to make your loan work for you
  • Exclusive reports: such as our Westpac Property Investor Report which includes yield and  capital gains by suburbs, developed by Westpac for our customers considering investing in rental property

* Other fees/charges may apply. For full details refer to our latest price list which is available from any Westpac branch free of charge.

Find an Investment Property Lending Specialist

Loan options

Your home loan options for investing in property

Much like you did with your home loan, you can structure your investment property's loan and the type of interest rate how you like, from fixed to floating or a mix of both - but did you know about other options such as offset, capped or revolving credit home loans like our Choices Everyday Floating? 

Here's a look at our loan options

If you're already a homeowner, you’re probably familiar with home loan options like fixed, floating and split – which is a combination of the two. You can also choose a capped loan.

Why a Split Home Loan?

Property investors tend to use split home loans to spread risk and to get the benefits of both floating and fixed interest rates. Having part of your loan on floating gives you flexibility (like the ability to make lump sum payments), while putting a portion of your loan on a shorter fixed term interest rate and a portion on a longer fixed term could help you spread your risk if interest rates go up or down.

Please see the below example showing some different options for how you can split your loan between fixed and floating.

Split final

What's a capped loan?

With a capped loan you ‘cap’ the interest rate on your loan for one to two years. You'll pay less interest if rates fall, and if rates go up your interest rate will never go higher than the capped rate. And like a floating loan, you can also make lump sum payments if you choose.

Revolving credit

Revolving transaction

 A revolving credit facility lets you combine your home loan with your everyday banking all in one account. You can pay your salary into your account, reducing what you owe on your loan and therefore helping you pay less interest overall. This product is great for investors who want to use the equity from their property to put towards improvements or other property-related expenses, without having to apply for additional lending.

There are no set repayments with a revolving credit loan, but you'll need to make sure your balance stays below the limit at all times. Our revolving credit loan is called Choices Everyday Floating and it gives you the most flexibility in your repayments.

Learn more about our loan options

Benefits of Choices Offset

Choices Offset gives you the ability to offset the balance of your eligible Westpac transaction and savings accounts against your floating home loan. You only pay interest on the difference, which could help you reduce the amount of interest you pay on your loan. You could save thousands, and cut years off your loan.

Some features of Choices Offset:
  • An account linked to your Choices Offset still lets you make everyday transactions as usual.
  • The more you put into the transaction and savings accounts linked to your Choices Offset loan, and the longer it stays in there, the less interest you are likely to pay on your investment property loan.


Cal 1To see how this can work for you, have a play with numbers on our Choices Offset calculator or read more about Choices Offset.

Offset vs revolving credit - what's the difference?

The benefits of revolving credit and offset are very similar, but the key difference between Choices Offset and Choices Everyday – our revolving credit loan – is that with Choices Offset you have separate accounts for your loan, savings and transactions and can link them together to help reduce your interest repayments. With Choices Everyday, you combine your loan and transaction account into one.  So deciding which one is right for you depends largely on whether you prefer to keep your money in separate accounts, or prefer to have all your finances in one account.

We'd love to talk you through our loan options and the best ways to make them work for your residential investment property. Call our Investment Property Lending Specialists and we'll come to you.

Learn more about our loan options

Set up and structuring

Setting up to invest in residential property

Let’s take a look at things you’ll want to know as you prepare to become an owner of a residential investment property – from ways you can structure your ownership to the records you’ll need to keep.

Types of ownership

You may not own your investment property in the same way you own your home, especially if you’re looking at a different property type.

For instance there are different ways in which property ownership can be structured. You could own a property individually or jointly with another person. The property could be owned by trustees of a trust, or a company or another entity type such as a partnership.

Your accountant, lawyer and/or financial adviser can help you decide which structure might best suit your needs. The ownership structure you select will depend on your individual circumstances and goals.

Check out the Inland Revenue Department website for information on tax treatments of different ownership types.

Investment property tax considerations

There may be some tax benefits from owning a residential investment property. To understand things like tax deductions and what you can actually claim, please talk to your accountant, tax adviser and/or lawyer for financial, taxation and legal advice specific to your needs.

Keep records

This sounds like a no-brainer, but keeping clear and accurate records of your property and everything to do with it is essential. That includes legal records of your ownership, record of any renovation work, and of things to do with the management of your tenants. Proof of your income and expenditure should be kept for tax purposes.

Loan repayment options

Your investment home loan repayment options

It always pays to regularly review your repayment strategy, making sure you’re on top of everything from the way you repay to the simple ways you can save on interest.

We cover the details in the Managing your loan section, but here’s a look at some repayment options that are sometimes utilised by property investors.

Review all repayment options

Find an Investment Property Lending Specialist

When things change

Adapting to the changes that come with life

The things that you need and want change often - sometimes because of your decisions, and sometimes due to the unpredictability of life. We've looked at two occasions you might encounter where you might need to adapt the way you own, pay for or manage your investment property.

When you lose an income stream

There are a number of reasons why you might lose an income stream, from the things you control - like taking time off to have a baby - to the ones out of your hands (like if you can't get tenants in your property for a few weeks).

Judy's story

Judy recently spoke with one of our Investment Property Lending Specialists as it was becoming increasingly difficult to find tenants for her Northland investment property.

She decided that to increase demand for her property she'd spend about $20,000 to renovate the property by painting, adding new carpets and redoing part of the bathroom.

Judy had some equity in the property so topped up her loan for the renovation. However this meant her repayments would be about $58 more a fortnight and the property would now be negatively geared.

Judy wanted to keep her cashflow at a maximum. After discussing her options with the Westpac Investment Property Lending Specialist she decided to restructure to an interest only loan.

The property is currently returning $1,200 per year and has been tenanted consistently since the renovation.

A look at interest-only repayments

Like Judy in the story above, changing your repayments to interest only could be a strategic way to help lower the monthly costs of owning your property. However, it does mean that you will have a larger amount of principal to pay off at the end of the term.

Redrawing on your loan surplus - 'Buffer'

If you have built up a buffer in your home loan by paying more than your minimum repayment requirements, your loan limit is likely to be higher than the current loan balance.

You may be able to redraw this money, which could be great if you need to pay for renovations or maintenance. Your buffer could also be handy if for example your rental property is empty for a few weeks.

Read about redrawing.

Repayment holidays

You may be eligible for a repayment holiday if you have built up a buffer - by paying more than your minimum repayment requirements, your loan limit would be higher than the current loan balance.

Your repayment holiday could last for as long as you have the buffer available.

To find out more, talk to one of our specialists.

When you want your kids to benefit from your property

Buying property with your children in mind is becoming a more common motivation in New Zealand, especially as house prices rise and buying a first home starts to look harder and harder. If this is your motivation you might want to think about the best way to set things up for later.This could help make things easier when your kids are finally grown, you've had enough of being a landlord, or you're just ready to give them a kick-start for their own property.

Investment Property Lending Specialist.