Investment lending

By the third property, serviceability is the only conversation

Deposit stops being the constraint early. What caps a portfolio is the assessment rate, how each lender shades rental income, and whether your existing loans were structured to let you keep going.

6.04% Sharpest panel rate, investor P&I at 80% LVR
64 Portfolios structured by this practice
3.00% Assessment buffer every lender must apply
20% Typical rental income shading — but it varies widely
Who is this for?

Where investors hit the wall

Almost always at property two or three, and almost always because of how the first one was set up.

01

Your borrowing capacity stopped growing

Existing debt is assessed at a buffered rate while rental income is discounted, so each property you add reduces what the next lender will approve. Which lender you use matters more than your income.

02

Your properties are cross-collateralised

Your lender holds two or more properties as security for one loan. It is convenient at the time and it traps your equity — you cannot sell or refinance one without unwinding the lot.

03

You want to release equity for the next deposit

Equity release is the engine of a portfolio. Done as a separate split against one security, it stays clean; done as a top-up across everything, it entangles the whole structure.

04

You are buying through a trust or company

Asset protection and tax treatment come at the cost of a much shorter lender list. Worth doing deliberately, with the structure decided before you make an offer.

Your lending options

The variables that decide your ceiling

Two lenders reading identical financials can differ by several hundred thousand dollars in what they will lend.

Income

Rental income shading

Lenders count between 70% and 90% of gross rent. On a portfolio yielding $90,000 that spread alone is worth roughly $18,000 of assessable income.

Income

Negative gearing add-backs

Some lenders add the tax benefit back into your income; others ignore it entirely. On a heavily geared portfolio it changes the answer completely.

Debt

How existing debt is assessed

Your own loans are buffered, but a few lenders assess external debt at the actual repayment. That single policy difference is often what unlocks the next purchase.

Structure

Standalone securities

One loan, one property, every time. It costs nothing extra and it means any property can be sold or refinanced on its own.

Structure

Interest only, used properly

Improves cash flow and preserves deductibility on investment debt. It also shortens the P&I window later, so the term needs deliberate planning.

Structure

Offset against the non-deductible debt

If you still hold a home loan, cash sits against that first. Ordering this correctly is worth more than a rate discount.

Rates and costs

Investment purchase costs

A $780,000 investment purchase in Queensland with a 20% deposit released from existing equity.

Cost Typical Range Notes
Stamp duty $21,850 By state No investor concessions — full rate applies
Equity release setup $0 $0 – $600 A new split against your existing security
Valuation on existing property $0 $0 – $450 Required to confirm available equity
Conveyancing $1,700 $1,200 – $2,600 Plus building and pest inspection
Landlord insurance $420/yr $300 – $700 Required by most lenders on investment security

Indicative only, as at March 2026, using Queensland transfer duty for an investment purchase. Stamp duty, surcharges and foreign buyer duty differ in every state. This is general information, not tax advice — speak to your accountant about deductibility and structure.

Why Lending Institute?

What actually stops the next purchase

Rarely the deposit. Nearly always assessment policy, and nearly always fixable by changing lender rather than changing your income.

01

Real lender comparison, in writing

Your file is run against the pricing and credit policy of every lender on our panel — not the three a bank branch can offer. You receive a written shortlist with the rate, the fees and the reason each lender made the list.

02

A lending strategy built around your position

Offset versus redraw, fixed versus variable, split structures, ownership through a trust — the structure is chosen for the next five years, not just the first repayment.

03

Guidance from people who read credit policy

Every broker here holds a Diploma of Finance and Mortgage Broking Management and has placed files with the lenders they recommend. We know which policies bend and which do not.

04

We stay on the file until it settles

Valuations, credit queries, conveyancer timelines and settlement bookings are ours to chase. You hear from us before you have to ask.

What usually gets in the way
  • The 3% assessment buffer applied to every existing and proposed loan
  • Rental income shaded to 80% or less by conservative lenders
  • Cross-collateralisation locking equity across multiple securities
  • Interest-only periods expiring together and spiking assessed repayments
How we place it
  • Lenders ranked by rental shading and add-back policy, not headline rate
  • Standalone securities so each property can be sold or refinanced cleanly
  • Existing structures untangled before the next application, not during it
  • Equity release sequenced ahead of the purchase so you can offer unconditionally
How it works

Understand → Compare → Apply → Settle

01 Day 0

Understand your goals

Twenty minutes, no forms. What you are buying, what you earn, what you owe and what you have saved.

Credit impact — none
02 Days 1–5

Explore your options

The file is built properly, then run against all forty lenders. You receive a written shortlist with rates and fees.

Credit impact — soft enquiry only
03 Days 5–7

Apply

A pre-qualified application to a lender whose policy you already meet. We order the valuation and manage the assessment.

Credit impact — enquiry recorded
04 Weeks 3–6

Settle

Unconditional approval, loan documents, settlement booked with your conveyancer. The rate review is diarised.

Credit impact — account reported
Run the numbers

Find your real ceiling before you bid

Borrowing power with the assessment buffer applied properly, LVR against the 80% threshold, and stamp duty by state.

Open the calculators
Common questions

Investor questions

Ask a broker →

Because it is assessing every existing loan at roughly three per cent above the actual rate while counting only part of your rent. Another lender using different shading and add-back policy can reach a materially different number on the identical file. A decline from one bank is a data point, not a verdict.

On investment debt it usually improves cash flow and keeps the deductible balance intact. The trade-off is that the principal has to be repaid over a shorter remaining term afterwards, so the later repayment step-up needs planning. On owner-occupied debt it rarely makes sense.

It gives one lender security over several of your properties for a single loan. Selling one property then requires the lender to reassess the whole position, and they can direct the proceeds. Standalone securities cost nothing extra and preserve your ability to act.

It can improve asset protection and give flexibility in distributing income, at the cost of a much shorter lender list, slightly higher rates and more complexity. It is a decision to make with your accountant before you make an offer — restructuring afterwards triggers stamp duty and capital gains tax.

Twenty per cent avoids LMI, and most investors release it from equity in an existing property rather than using cash. Some lenders will go to 90% on investment security with LMI, but the serviceability test at that level is where most files fail rather than the deposit itself.

Get started

Find out what the next purchase actually needs

Send us the portfolio as it stands. We will tell you which lender gets you furthest and what needs restructuring first.

Panel rankedBy shading and add-back policy, for your file.
No credit enquiryComparison runs on a soft enquiry only.
Structure firstWe fix the existing setup before adding to it.