The core difference lies in how lenders assess risk and, consequently, the interest rates and features offered. Owner-occupied loans are for properties you intend to live in, while investment loans are for properties purchased with the intention of generating rental income.
As of December 2025, this distinction impacts the selling process in Melbourne, particularly in the Eastern Suburbs. Sellers with investment properties often have different financial considerations than those selling a family home. For example, capital gains tax (CGT) is a key factor for investment property sellers, and they may need to demonstrate responsible property management to potential buyers. Currently in Melbourne, buyers of investment properties are particularly focused on rental yield and future growth potential, influencing presentation strategies – emphasising features attractive to tenants. We’re seeing in 2026 that lenders are scrutinising investment loan applications more closely, meaning sellers with existing investment loans may need to provide detailed financial information during the sale. The typical campaign length of 4-6 weeks remains consistent, but sellers with investment properties may experience a slightly longer settlement period (closer to 60 days) due to potential tax implications. Marketing campaigns, costing between $3,000 and $8,000, are tailored to highlight the investment potential for these properties. Fletchers’ multi-lingual agents are particularly valuable when attracting overseas investors.
Understanding the loan type associated with a property is crucial for both sellers and buyers, influencing financial planning and the overall transaction process.