Investment Property Lending

Investment lending
structured for long-term growth

Not just a loan — a lending strategy. Adrian's $150M+ commercial banking background means he understands how lenders assess investment risk, how to structure loans across a growing portfolio, and how APRA's 2026 DTI rules affect what you can borrow and with whom.

$150M+ commercial portfolio managed. Adrian has worked directly with property investors and business owners inside the banking system — he knows exactly how lenders assess investment risk.

Book a free assessment

Tell us about your investment goals — Adrian responds within 2 hours.

Free · No obligation · Response within 2 hours

$150M+
Commercial lending portfolio
managed by Adrian
30+
Lenders on the panel including
specialist investment lenders
6x
APRA DTI threshold — the number
every investor needs to understand
2hr
Response guarantee
on every enquiry
Why choose Ascent Property Finance

The broker
investors choose

Most mortgage brokers can find you a competitive rate. Fewer understand how lenders actually assess investment applications — what they look for, where the risk flags are, and how to structure an application to give it the best chance.

Book a free assessment
01
Commercial banking background — not just broking

Adrian spent years inside the banking system managing a $150M+ commercial lending portfolio. He knows how lenders think, what triggers a decline, and how to structure an application to succeed — knowledge that most brokers simply don't have.

02
APRA 2026 DTI rules — understood and navigated

The February 2026 APRA changes have made lender selection more consequential than ever for investors. Adrian tracks which lenders have headroom for high-DTI applications and which non-bank options are available — so you get the right lender, not just any lender.

03
30+ lenders — including specialist investment lenders

The panel includes major banks, second-tier lenders, and non-bank lenders who are not subject to APRA's DTI cap. For investors with higher DTI ratios, having access to the full market — not just the big four — can mean the difference between approval and decline.

04
Long-term thinking — not just the next transaction

Adrian's clients are building portfolios, not just buying properties. He structures today's loan with your next purchase in mind — keeping loan structures clean, avoiding cross-collateralisation, and preserving your capacity to keep growing.

05
Free service — paid by the lender at settlement

There is no cost to you at any stage. Adrian is paid a commission by the lender when your loan settles. You get access to 30+ lenders and specialist investment lending advice with no upfront cost and no obligation.

Loan structure strategy

Interest only vs
principal and interest —
which is right for you?

This is one of the most consequential decisions an investor makes — and the right answer changes depending on your overall debt position, tax situation, and whether you own your own home. There is no universal answer. Here is how to think about it.

Popular choice for investors

Interest Only (IO)

You pay only the interest on the loan for a set period — typically 5 years. The loan balance does not reduce. Monthly repayments are lower, which improves short-term cash flow and maximises the tax-deductible interest component.

  • Lower monthly repayments — improves cash flow
  • Maximises tax-deductible interest (on investment loan)
  • Frees up cash to accelerate repayments on non-deductible home loan
  • Useful when building a portfolio — preserves borrowing capacity
  • Rate premium of ~0.20–0.40% vs P&I
  • Loan balance stays the same — no equity built during IO period
  • Repayments jump 30–40% when IO period ends after 5 years
  • IO extension requires full re-application — approval not guaranteed
Best for: Investors who own their home and want to direct principal repayments toward non-deductible debt first
Lower rate · builds equity

Principal & Interest (P&I)

You pay both interest and a portion of the principal each month. The loan balance reduces over time, building equity in the investment property. Lenders charge lower rates for P&I and assess future loan applications more favourably.

  • Lower interest rate — typically 0.20–0.40% less than IO
  • Builds equity in the investment property over time
  • Assessed more favourably when applying for future loans
  • No repayment shock when IO period ends
  • Higher monthly repayments than IO
  • Reduces tax-deductible interest as loan balance falls
  • May reduce cash flow available for further investment
Best for: Investors without a home loan, those who want to build equity, or borrowers approaching their DTI limit

Adrian's approach: The IO vs P&I decision is made in the context of your complete financial picture — not in isolation. If you have a non-deductible home loan, directing repayments toward that while running IO on your investment loan is usually the more tax-efficient strategy. If you don't own your home, P&I on the investment loan usually makes more sense. Adrian models both scenarios with your actual numbers before making any recommendation.

Building a portfolio

How Adrian structures
lending for portfolio investors

01

Establish the strategy before the first purchase

Every lending decision affects the next one. Adrian maps out your intended portfolio — property types, price points, timelines — and structures the first loan with the second and third purchase in mind. The wrong structure on property one can prevent property two.

02

Avoid cross-collateralisation

Cross-collateralising properties — using multiple assets as security for the same loan — reduces your flexibility and gives the bank control over decisions that should be yours. Adrian structures each investment property on its own loan with its own security wherever possible.

03

Spread across lenders strategically

Concentrating all your loans with one bank gives that bank disproportionate power — and under APRA's 2026 DTI rules, it also means one bank sees your full debt position. Spreading across lenders, where appropriate, keeps DTI ratios lower per institution and preserves access to credit.

04

Review the portfolio, not just the next loan

Adrian's clients who are building toward retirement in 5–10 years need a lending plan that considers the exit as much as the entry. Cash flow, equity position, and debt reduction strategy are assessed holistically — not just at the point of each purchase.

What every investor needs to know in 2026

The APRA DTI rules
and what they mean
for your next purchase

From 1 February 2026, APRA introduced a debt-to-income (DTI) lending cap that directly affects how banks assess investment loan applications. If your total debt exceeds 6 times your gross annual income, your application falls into the "high DTI" category — and banks are now limited to approving no more than 20% of new investment loans in this bracket.

This is not a ban. It is a quota. Banks can still approve high-DTI loans — but only until they hit their 20% limit. Once a bank reaches that threshold, high-DTI investment applications will be declined regardless of the quality of the application. The practical consequence: lender selection is now as important as loan structure for investors with growing portfolios.

Critical detail most brokers miss

Non-bank lenders are NOT subject to the APRA DTI cap. They are not authorised deposit-taking institutions (ADIs) and the rule does not apply to them. For investors whose DTI is above 6x, non-bank lenders may offer a genuine path to approval that a bank cannot — at competitive rates and without the quota constraint.

Your DTI ratio is calculated as total debt (all outstanding loans) divided by gross annual income. If you earn $150,000 and have total debt of $900,000, your DTI is 6.0x — right at the threshold. Adding an investment loan at $600,000 pushes your DTI to 10.0x, firmly in high-DTI territory.

What the APRA DTI cap means in practice
01
Your DTI ratio determines which lenders can help you

If your DTI is below 6x, most banks can assess your application normally. If it's above 6x, the lender's remaining high-DTI quota determines whether they can proceed. Adrian checks every lender's current position before recommending one.

02
Lenders treat rental income differently — and this matters

Most banks accept 70–80% of rental income in their serviceability calculations to account for vacancy. Some lenders accept higher percentages for experienced investors with strong rental history. The lender that accepts more of your rental income calculates a lower effective DTI — which can mean the difference between qualifying and not.

03
Portfolio sequencing — the order of purchases matters

Spreading purchases across different lenders keeps each individual DTI calculation lower. Buying three properties with the same bank stacks all debt against the same income figure. Spreading across lenders means each institution only sees part of the picture — a legitimate strategy when done correctly.

04
The 3% serviceability buffer still applies on top

APRA's DTI cap sits alongside the existing 3% serviceability buffer requirement — lenders must assess your ability to repay at your actual rate plus 3%. With investment rates at 5.85%–7.84%, you're being assessed at 8.85%–10.84%. This is why income and loan structure matter so much.

Check your DTI ratio
Your DTI ratio
7.33x
Above 6x — lender selection is critical. Non-bank options available.

Indicative only. Actual DTI calculations vary by lender — different lenders treat rental income, existing debts and loan types differently. Speak to Adrian for an accurate assessment.

Frequently asked questions

Investment
loan FAQs

Can't find the answer you need? Call Adrian directly on 0411 747 956.

0411 747 956
  • From 1 February 2026, APRA limited banks to issuing no more than 20% of new investment loans to borrowers with a debt-to-income ratio of 6x or higher. This is a quota cap — banks can still approve high-DTI loans until they reach their 20% limit. Non-bank lenders are not subject to the rule, and APRA excludes construction loans for new homes and owner-occupier bridging loans from the cap entirely. The practical impact is that lender selection matters more than ever: some banks will have more headroom than others, and non-bank lenders may offer a genuine path for investors above the 6x threshold. A broker who monitors which lenders have remaining quota can make a material difference to your outcome.
  • Most lenders cap investment property lending at 90% LVR. A 20% deposit (80% LVR) is recommended to avoid Lenders Mortgage Insurance and access the best available rates. Many investors use equity from their owner-occupied home instead of cash savings — if your property has grown in value, you can draw on that equity to fund the deposit and purchase costs without depleting your savings buffer. Adrian calculates your usable equity as part of the free assessment.
  • Interest-only (IO) reduces monthly repayments, improves cash flow, and maximises the tax-deductible interest component — useful if you're also paying off a non-deductible home loan. However IO rates are typically 0.20–0.40% higher, the loan balance doesn't reduce, and repayments can jump 30–40% when the IO period ends after 5 years. Principal and interest (P&I) attracts lower rates, builds equity, and is assessed more favourably for future loans. The right choice depends on your complete financial position — Adrian models both with your actual numbers before making a recommendation.
  • Yes. If your owner-occupied home has increased in value, you can access the equity built up to fund the deposit and purchase costs for an investment property — without using cash savings. Banks typically lend up to 80% of your property's value. The equity is structured as a separate loan split, keeping your investment and home loan borrowing distinct. This is one of the most common entry points for investors purchasing their first investment property, and Adrian will calculate your exact usable equity as part of your free assessment.
  • Each additional investment property increases your total debt and affects your DTI ratio. Lenders assess all existing loan repayments simultaneously. Rental income is generally assessed at 70–80% of actual rent to account for vacancy — some lenders accept higher percentages for experienced investors with strong rental histories. Under APRA's 2026 DTI rules, if your portfolio pushes your DTI above 6x, lender selection becomes critical. Adrian understands how different lenders calculate rental income and assess existing portfolios, which can materially affect what you're able to borrow and at what rate.
  • Cross-collateralisation means using multiple properties as security for the same loan or loans with the same lender. While some banks default to this structure, it reduces your flexibility significantly — you cannot sell or refinance one property without the lender's involvement across all of them. For investors building a portfolio, keeping each property on a separate loan with its own security gives you more control over each asset. Adrian structures investment loans to avoid cross-collateralisation wherever possible.
  • Yes. Investment property loan rates are typically 0.25–0.60% higher than owner-occupier rates with the same lender. As of August 2026, variable investment loan rates range from approximately 5.85% to 7.84% across Australian lenders. The interest on investment loans is generally tax deductible, which partially offsets the higher rate. A broker can compare the after-tax cost across lenders — not just the headline rate — to find the best net position for your situation.
  • The 2026–27 Federal Budget proposed limiting negative gearing to newly built residential property from 1 July 2027. Under the proposal, an established property acquired after Budget night (12 May 2026) would no longer allow net rental losses to be offset against other income such as wages — those losses could still be offset against rental income and carried forward. Properties already held are proposed to be grandfathered. A separate change replaces the 50% CGT discount with cost base indexation. These measures remain subject to legislation, and how they apply to you depends on your circumstances — speak to your accountant. What we can do is structure your lending so it still works whichever way the rules land.
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Ready to structure
your next investment?

Book a free assessment with Adrian. He'll review your current position, calculate your DTI ratio, check which lenders have headroom for your application, and structure a lending strategy around your long-term portfolio goals — all within 2 hours of your enquiry.