Investment property lending: what lenders look for

Lenders assess investment loan applications with a different lens to owner-occupied loans. Rental income, existing debt levels, and portfolio size all factor into borrowing capacity.

Interest-only repayments can improve cashflow in the early years of an investment, but they come with trade-offs. Understanding how each structure affects your long-term position is essential.

Cross-collateralisation — where multiple properties secure a single loan — can simplify lending but reduce flexibility. Stand-alone security structures offer more control when you sell or refinance individual properties.

Working with a broker who understands investment lending policies across multiple lenders gives you a significant advantage when structuring your portfolio.