How much deposit do you need for an investment property?

Deposit requirements for investment properties are typically higher than for owner-occupied purchases.

Common ranges include:

  • 10% deposit – possible in some cases, with stricter lender requirements
  • 20% deposit – most common, avoids lenders mortgage insurance (LMI)
  • 20%+ deposit – provides more flexibility and stronger lender positioning

The exact requirement depends on your financial position, the property and the lender’s policy.

What counts as an investment property deposit?

Lenders look at both the size and the source of your deposit.

Common sources include:

  • savings held over time
  • equity from existing properties
  • proceeds from asset sales
  • available cash reserves

Unlike first home buyers, investor deposits are often more reliant on equity — but still need to be structured correctly.

Using equity as your deposit

Many investors use equity instead of cash savings.

This typically involves:

  • accessing usable equity from an existing property
  • setting up a separate loan or facility
  • using those funds as the deposit for the new purchase

While this can reduce the need for cash, it increases overall debt — which lenders will assess carefully.

How lenders assess investment deposits

Lenders assess deposits as part of your overall risk profile.

They will typically consider:

  • loan-to-value ratio (LVR) across all properties
  • source and structure of the deposit
  • borrowing capacity and servicing position
  • property type and location
  • your experience as an investor (in some cases)
  • overall loan structure

Different lenders take different approaches, particularly for higher LVR or multi-property scenarios.

Common challenges with investment deposits

Investment deposits can create issues if not structured correctly.

Common problems include:

  • assuming deposit requirements are the same as owner-occupied loans
  • overestimating how much equity is usable
  • not accounting for lender LVR limits
  • insufficient borrowing capacity despite having a deposit
  • using lenders that restrict investment lending
  • cross-collateralising properties unnecessarily
  • focusing on deposit size without considering structure

These issues can limit approval or reduce future flexibility.

How we structure investment deposits at Evolve

We focus on aligning your deposit with a broader investment strategy.

This includes:

  • confirming how much deposit is actually required
  • assessing cash vs equity-based contributions
  • structuring equity release where appropriate
  • identifying lenders suited to your scenario
  • balancing deposit size with borrowing capacity
  • avoiding unnecessary cross-collateralisation
  • planning for future purchases, not just the current one

The objective is to position your deposit to support portfolio growth — not restrict it.

Speak with a broker before committing your deposit

Deposit decisions can impact your borrowing capacity and long-term strategy.

Before proceeding, it’s worth understanding:

  • how much deposit you really need
  • whether equity or cash is more effective
  • how lenders will assess your structure
  • which lenders support your investment plans
  • how to avoid limiting future opportunities

A well-structured deposit supports growth. A poorly structured one can hold you back.

Speak with Evolve Lending & Finance to review your structure and next steps.