Simple hacks to save on your deposit in Robina

How much deposit do you need for an investment property?

Most lenders will ask for at least 20 per cent of the purchase price as a deposit on an investment property. That keeps your loan-to-value ratio at 80 per cent or below, which means you avoid paying Lenders Mortgage Insurance and generally get access to better rates. Some lenders will go higher, but you'll pay LMI on anything above that threshold, and the premium rises quickly as your deposit shrinks.

If you're buying in Robina, the deposit requirement works the same way as anywhere else, but the median values around here mean you're looking at a decent chunk of cash upfront. A unit near Robina Town Centre or a house backing onto one of the golf courses will still need that 20 per cent if you want to keep costs down. The difference between an 80 per cent LVR and a 90 per cent LVR isn't just the LMI premium, it's also the interest rate and the way lenders assess your serviceability.

Using equity from your home to fund the deposit

If you already own a property, you can often use the equity in that property to fund your investment loan deposit without needing to save separately. Lenders will let you borrow against the value of your current home, releasing equity that can be used as a deposit and to cover purchase costs like stamp duty and legal fees.

Consider a buyer who owns a home in Robina valued at around the median for the suburb, with a mortgage that's been paid down over several years. If the remaining loan balance sits well below 80 per cent of the property's current value, that buyer might have access to $100,000 or more in usable equity without needing to refinance the entire loan. That equity can fund the deposit on a second property, often without the need for any cash savings at all.

The lender will assess your total borrowing across both properties and apply the standard serviceability buffer of 3.0 percentage points above the loan rate. Your rental income from the new investment property will be included in the assessment, though most lenders will only count 80 per cent of the gross rent to allow for vacancy periods and maintenance costs. Debt-to-income limits also apply from early this year, so if your total borrowing sits at six times your income or above, some lenders may need to limit your loan size or decline altogether.

Can you use a guarantor to reduce your deposit?

A family guarantee can help you buy an investment property with a smaller deposit, and in some cases, no deposit at all. A parent or other family member offers their own property as additional security, which reduces the lender's risk and lets you borrow more without paying LMI.

This approach is more common with first home buyers, but it's also available for investors, particularly if you're buying your first investment property and don't yet have enough equity in your own home. The guarantor doesn't hand over any money, they just provide security. Once you've paid down enough of the loan or the property increases in value, you can usually remove the guarantee and release the family member from the arrangement.

The risk sits with the guarantor. If you default, the lender can pursue their property to recover the shortfall. That makes it a significant commitment, and most lenders will require the guarantor to get independent legal advice before proceeding.

What about saving a smaller deposit and paying LMI?

If you don't have 20 per cent saved and you don't want to use equity or a guarantor, you can still borrow with a smaller deposit by paying LMI. Lenders will generally go up to 90 per cent LVR for investment properties, and in some cases 95 per cent, though the higher you go, the more the premium costs.

LMI is calculated based on the loan amount and the LVR. At 85 per cent LVR, you might pay a few thousand dollars. At 90 per cent, that can jump to $10,000 or more depending on the property price. The premium can usually be capitalised into the loan, so you don't need to pay it upfront, but it does increase your total borrowing and your ongoing repayments.

For some buyers, paying LMI makes sense if it gets them into the market sooner. Property values in areas like Robina, particularly around the health and education precincts near Robina Hospital and Bond University, have shown consistent growth over time. Waiting another year or two to save a full 20 per cent deposit might mean you're buying into a more expensive market, so the LMI cost can be offset by capital growth.

Borrowing costs and genuine savings

Lenders distinguish between genuine savings and equity. If you're using equity, the 20 per cent deposit requirement still applies, but the equity itself satisfies that. If you're saving cash, most lenders want to see that the deposit has been held in your account for at least three months and wasn't a one-off gift or transfer shortly before you applied.

Genuine savings usually include funds in savings accounts, term deposits, shares, or managed funds. Proceeds from the sale of another property or an inheritance are generally accepted without the three-month rule. Rental bonds, tax refunds, and first home saver accounts also count, depending on the lender.

On top of the deposit, you'll need to budget for stamp duty, legal fees, building and pest inspections, and any lender fees. Stamp duty in Queensland is calculated on a sliding scale and can add tens of thousands to your upfront costs, so it's worth running the numbers early.

Interest-only loans and deposit size

Many investors choose an interest-only loan structure to keep their repayments lower in the early years and maximise tax deductions. Lenders treat interest-only loans differently to principal-and-interest loans when assessing risk. At LVRs above 80 per cent, some lenders won't offer interest-only at all, and those that do may charge a higher rate or apply stricter serviceability tests.

If you're planning to go interest-only, having a 20 per cent deposit gives you access to the full range of loan products and keeps your borrowing costs down. Most interest-only periods run for five years, after which the loan converts to principal and interest unless you apply to extend. At that point, your repayments will increase, so it's worth factoring that into your long-term cashflow planning.

What's changed with negative gearing and CGT?

If you're buying an established property in Robina after May last year, you won't be able to offset any rental losses against your other income from the 2027-28 financial year onward. Losses can still be carried forward and used against rental income or capital gains on residential property in future years, but the immediate tax benefit is gone.

New builds are exempt from that rule, so if you're buying a brand-new unit or house, you can still negatively gear in the traditional way. Given that distinction, some investors are now favouring new builds, even if the purchase price is slightly higher, because the tax treatment is more favourable. From July next year, the capital gains tax treatment also changes for established properties, with cost base indexation replacing the 50 per cent discount for gains made after that date. New builds get to choose between the two methods, which adds another layer of flexibility.

These changes don't affect how much deposit you need, but they do affect the overall return on the investment, which in turn affects how lenders assess your ability to service the loan. Rental income remains the primary factor, but if your property is cashflow negative and you can't offset that against salary, some lenders will take a more conservative view of your borrowing capacity.

You'll want to speak to a tax adviser about how the new rules apply to your situation. We can help structure the loan, but we don't give tax advice, and the rules are detailed enough that getting them wrong could cost you.

Call one of our team or book an appointment at a time that works for you. We'll go through your deposit options, work out how much you can borrow, and put together a shortlist of lenders that fit what you're trying to do. If you're already holding a property and want to explore your equity position, we can arrange a valuation and run the numbers before you commit to anything.

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