Different lenders assess rental income, expenses, and serviceability in completely different ways. That gap can mean tens of thousands more borrowing capacity for the exact same investor.
Since 2023, regulatory changes have significantly reduced how much property investors can borrow. But the gap between lenders has never been wider.
APRA's stricter serviceability buffers since 2023 have reduced investor borrowing power across all lenders.
Some lenders shade rental income by 20–30%, while others use 80–100% of the market rent in their calculations.
Two identical investors can have over $100,000 difference in borrowing capacity depending on the lender chosen.
Many banks use negative gearing calculations that penalise investors rather than accounting for tax benefits.
Living expense benchmarks (HEM) vary dramatically between lenders — significantly impacting your assessed capacity.
The lender you choose matters more than ever. A broker who compares 30+ options can find where your borrowing power is maximised.
Every lender has a different formula. Here's why the same investor gets wildly different results depending on where they apply.
Some lenders use only 60% of your rental income for serviceability, while others use 80% or even 100%. On a property earning $600/week, that's a difference of $240/week in assessed income — a massive impact on borrowing power.
⚡ 60% vs 80% vs 100% — huge gapSome lenders allow the tax benefit of negative gearing in their serviceability calculation, effectively increasing your borrowing power. Others ignore it completely. This one factor alone can swing your capacity by tens of thousands.
⚡ Tax benefit included vs excludedWhen assessing your existing investment loans, some lenders use actual repayments while others apply a higher assessment rate (often the rate + 3% buffer). This can dramatically reduce your capacity if you already hold investment debt.
⚡ Actual repayments vs buffer rateLenders use different living expense benchmarks. Some use the Household Expenditure Measure (HEM) while others require actual expenses — which are often higher. The benchmark used can significantly affect your borrowing capacity.
⚡ HEM benchmarks vs actual expensesNote: Specific lender names are not disclosed. Assessment criteria change regularly. Our brokers have current knowledge of each lender's policies.
Beyond the interest rate, these features can make or break your investment strategy.
Interest-only repayments reduce your cash flow pressure, freeing up capital for further investments. Available for up to 5 years on most investment loans before reverting to principal and interest.
For investment loans, an offset account preserves the tax deductibility of your loan interest, while redraw can create tax complications. Understanding this distinction is critical for investors.
Fixed rates provide certainty for cash flow planning. Variable rates offer flexibility for extra repayments and access to offset. Many investors use a split strategy to balance both benefits.
Access equity in existing properties through a line of credit or equity release facility. This can provide the deposit for your next investment without needing additional cash savings.
Cross-collateralising properties (linking them under one lender) can limit your flexibility and create risk. We structure loans to keep properties independent where possible.
Interest payments, loan fees, and certain costs may be tax deductible on investment loans. Proper loan structuring from the start ensures you maximise legitimate deductions.
We find the lender whose assessment criteria work in YOUR favour — not just the one with the lowest rate.
We assess your complete financial position across 30+ lenders, identifying exactly how each one would evaluate your income, debts, and rental portfolio.
We pinpoint which lenders assess YOUR situation most favourably — considering rental shading, negative gearing treatment, and expense benchmarks.
We structure your application to maximise capacity through strategies like loan splitting, income presentation optimisation, and strategic debt positioning.
We submit your application to the lender that gives you the most borrowing power — not just the one with the lowest headline rate. The right lender can unlock significantly more capacity.
From first conversation to settlement — here's exactly what to expect.
Fill in the form below or call us. Share your investment goals, current portfolio, and financial position. Our specialist broker will review your situation — typically within 24 hours.
We compare 30+ lenders to find which ones assess your situation most favourably. We present a shortlist with clear comparisons of borrowing power, rates, and features for each option.
We prepare and lodge your application to the lender's exact requirements. Conditional approval typically takes 1–3 business days. Formal approval usually 3–7 business days.
We coordinate with the lender, your solicitor, and the vendor's team to ensure a smooth settlement. You focus on your investment — we handle the finance.
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One of our investment lending specialists will review your situation and be in touch within 24 hours. In the meantime, feel free to call us on 0480 03 03 03 if you have any questions.
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