Investment Property Loans › What is the serviceability buffer on an investment loan?

What is the serviceability buffer on an investment loan?

Lenders test your ability to repay using an assessment rate higher than the actual rate, commonly around three percent above it. This buffer checks you could still manage repayments if rates rose.

Written by Ross McFarlane, Licensed Mortgage Broker (Credit Representative 526725). About the author

Why this matters

The buffer is set by regulators to keep lending responsible, and it is a big reason borrowing power can come back lower than you expected. Because every existing debt is also tested at the buffer, how your loans are structured and presented affects how much you can borrow for the next investment.

The key points

Lenders test repayments at a rate above the real one.
The buffer is commonly around three percent.
It checks you could cope if rates rose.
It is a key reason borrowing power can be limited.

Free, no obligation

Plan your next investment property

Answer a few quick questions and we can map your equity and borrowing options across a panel of more than 70 lenders. No cost, no obligation.

Check Your Options

A few quick questions, no obligation.

What is your goal?

Buy a home or investment property First home, next home, or adding to your portfolio Build a house or develop land New build, renovation, duplex, or subdivision project Lower my current repayments Better rate, release equity, or restructure existing debt Finance an established commercial property Business premises or commercial investment asset

Tell us a bit more about the plan

How do you earn your income?

Standard salary or wage Full-time, part-time, or casual employment (PAYG) Self-employed or business owner Sole trader, company director, or contractor

How is your credit score?

This helps us match you to the right lender from the start.

Healthy No issues that I am aware of A few small marks A couple of late payments, now caught up Not sure, or it is complicated We work with specialist lenders for these situations

Last step. Where should we send your options?

Your information is private and we will never share it.

First Name

Last Name

Email Address

Australian Mobile Number

By submitting, you agree to be contacted by one of our team of licensed mortgage brokers. No obligation. No spam.

You're all set.

We've received your details. One of our friendly brokers will reach out within 1 business day to help guide you through your options.

More investment property loans questions

Back to the full Investment Property Loans guide

Last reviewed: June 2026

General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.