Investors use mortgage brokers because lending policy, not just the interest rate, decides how many properties you can buy and how your loans are structured. A broker can compare how dozens of lenders treat rental income, existing debts and self-employed income, and plan which lender to use for each purchase so you don’t hit a borrowing wall early. Brokers arranged a record 81.6% of new home loans in the June 2026 quarter, and for investors with more than one property the advantage is often greatest.
What a mortgage broker does
A broker compares loans from a panel of lenders, recommends one that suits you, and manages the application through to settlement. Since 2021, brokers have had a legal duty to act in your best interests when recommending a loan, and to prioritise your interests if there’s a conflict.
Brokers are usually paid commission by the lender you choose, an upfront amount when the loan settles and a smaller ongoing trail. Most don’t charge borrowers, but ask how they’re paid and whether any fees apply to you.
Broker or going direct: what investors should weigh
| Using a broker | Going direct to a lender | |
|---|---|---|
| Choice of lenders | Dozens on the broker’s panel, including smaller banks and non-banks | One lender’s products |
| Credit policy knowledge | Compares how each lender assesses rent, debts and self-employed income | Only that lender’s policy |
| Planning several purchases | Can sequence lenders to protect borrowing capacity | Limited to what that lender will approve |
| Loan structure | Usually helps set up separate loans, offsets and splits | Depends on the lender’s staff |
| Rate negotiation | Can request pricing discounts on your behalf | You negotiate yourself |
| Cost to you | Usually free; paid by lender commission | Free |
See mortgage broker or bank for the full comparison.
Why policy matters more for investors
Two investors with the same income can get very different answers from different lenders. Lenders differ on:
- How much rent they count, often 70% to 80% of the gross rent, sometimes less for some property types.
- How they assess your existing loans, usually at a buffered rate rather than your actual repayment, and sometimes over a shorter remaining term.
- Self-employed and variable income, such as bonuses, overtime and trust distributions.
- Postcodes and property types they’ll lend on, and at what LVR.
- High debt-to-income loans. APRA limits how much new lending banks can do at six times income or more, so some banks may be harder to deal with if you’re highly geared.
A broker who works with investors can tell you which lender maximises your borrowing capacity now, and which one to save for your next purchase.
Structuring loans for growth
The way loans are set up affects tax and flexibility for years. A good broker will help you:
- Keep each property on a separate loan, without cross-securing.
- Use a separate equity loan for deposits so investment debt is easy to identify.
- Attach offset accounts where you’ll hold cash, rather than relying on redraw.
- Choose interest-only or principal and interest to suit your cash flow.
Confirm tax questions with an accountant. See how to structure investment loans for tax.
Choosing a broker
- Investor experience. Ask how many of their clients hold two or more investment properties.
- Panel size. Ask how many lenders they use regularly, and whether that includes non-banks.
- Licensing. Brokers must hold an Australian Credit Licence or be a credit representative; you can check the ASIC registers.
- Commission disclosure. They must tell you how they’re paid.
- Ongoing service. Ask whether they’ll review your rate each year.
If you’re new to investing, start with our guide to the investment loan basics.
How much can a better investor rate save?
Investor rates vary more between lenders than owner-occupier rates. On 2 October 2026 the average investor variable rate was 6.89% and the lowest was 5.94% (Canstar). On a $700,000 investment loan over 30 years, our calculations excluding fees:
| Repayment type | At 6.89% (average) | At 5.94% (lowest) | Difference per month |
|---|---|---|---|
| Principal and interest | about $4,606 | about $4,170 | about $436 |
| Interest-only | about $4,019 | about $3,465 | about $554 |
That is more than $5,000 a year in pre-tax cash flow on one property. Lenders also assess investors differently: APRA’s 3 percentage point serviceability buffer applies to every new loan, and loans at a debt-to-income ratio of 6 or more are capped at 20% of each bank’s new lending.
Frequently asked questions
Can a broker help me buy more investment properties?
Often, yes. Lenders assess rent, existing debts and income differently, so the order in which you use lenders affects how much you can borrow later. A broker who works with investors can choose a lender for each purchase that preserves your borrowing capacity for the next one, and set up the loans to keep your options open.
What should I ask a mortgage broker?
Ask how many lenders they use, how they’re paid, how much experience they have with investors, which lenders they’d suggest and why, how they’d structure your loans, and whether they’ll review your rate in future. Ask them to explain the total cost, not just the rate.
Do brokers have access to all lenders?
No. Each broker works with a panel of lenders, often dozens, but no broker covers the whole market. Some lenders don’t deal with brokers at all. Ask which lenders are on the panel and whether the broker regularly uses non-bank lenders as well as the major banks.
Sources
- MFAA, Mortgage broker market share reaches record 81.6%
- APRA, Macroprudential policy settings, May 2026
- ASIC Moneysmart, Choosing a home loan
General information only. It does not consider your objectives, financial situation or needs and is not credit, tax or financial advice.