How can brokers get more out of record investor activity?

Investor activity in the Australian property market has nearly doubled over the past 10 years, increasing from $23 billion in 2015 to a record high of $39 billion in 2025, according to the Australian Bureau of Statistics.

Investors now account for 41 per cent of mortgage demand, a level that has not been seen since the final quarter of 2016.

The rise in new investor loan commitments has outpaced owner-occupier loans by a factor of more than six, increasing by 13.6 per cent in the September 2025 quarter compared with growth of just 2 per cent for owner-occupiers. Investor loan values also rose 17.4 per cent over the quarter, with total value now at $39.8 billion.

All markets aside from the ACT now see investors making up a significant portion of lending, with particularly high investor concentration in markets such as Darwin in the Northern Territory, where investors account for 44.2 per cent of lending.

However, non-bank lender Bluestone has warned that there are risks emerging in 2026, and has released a guide to empower brokers to "thrive in a shifting market".

The 2026 Investor Guide is based on information from property analytics company Cotality’s December 2025 housing charts and September quarter lending data from the Australian Bureau of Statistics.

Writing in the guide, Cotality executive research director Tim Lawless commented: “A key risk as we head into 2026 stems from high inflation and the risk that interest rates will be in a ‘higher for longer’ holding pattern. The chances of another rate cut look slim next year, which could weigh on housing confidence,” he said.

“Another risk comes in the form of credit tightening. APRA has already made a light-touch adjustment to credit policy, announcing a 20 per cent limit on high debt-to-income ratio lending that goes live on February 1.”

Lawless warned that credit policy could change further in the future.

“It seems likely that APRA will be on alert for any further rise in investor credit growth or a pickup in household debt levels, which could trigger further credit policy adjustments for authorised deposit-taking institutions,” he said.

Although rental income has recovered from its COVID-19 dip and rents continue to rise across regional markets (plus 6.2 per cent) and capitals (plus 4.5 per cent), gross rental yields have softened as dwelling values have increased faster than rents.

Low levels of housing supply continue to underpin market conditions. Listings are 18.3 per cent below the five-year average and 14 per cent lower year on year, intensifying competition for limited stock.

Lawless said housing growth was not expected to be as strong in 2026 as it was in 2025.

However, he added: “It’s hard to price moving into reverse while we have such a significant undersupply of housing and low listings.”

Broker strategies in the investor market

As investor demand grows and lending conditions evolve, Bluestone said that brokers can add value by focusing on positioning, partnerships, and tailored solutions.

• Partner and build trust: According to Bluestone, brokers can strengthen long-term relationships by proactively engaging with a client’s broader finance network, including accountants and advisers. Leveraging non-bank lending solutions can help address complex needs such as tax debt consolidation, positioning brokers as strategic partners rather than transactional intermediaries. Where appropriate, encouraging clients to seek advice from licensed financial advisers can also help align lending decisions with broader objectives.

• Optimise client positioning: Bluestone said that correctly positioning a client early is critical, as it can influence both borrowing capacity and property search outcomes. Understanding lender policies and documentation options allows brokers to present a client’s financial position more effectively, particularly for self-employed borrowers, where alternative documentation may better reflect recent trading conditions.

• Be an international liaison: Australians living and working overseas represent a specialised investor segment with unique income, tax, and residency considerations. Specialist expat lending solutions can improve serviceability by accepting a wider range of currencies and countries of residence, with trust and expertise central to managing loans for clients based offshore.

• Build solutions and portfolios: Bluestone also advised brokers that successful investor outcomes depend on understanding a client’s full portfolio and long-term goals. Brokers can support portfolio growth by exploring refinancing and equity release options to fund renovations, redevelopment, or additional property purchases, supported by loan structures that align with cash flow and investment objectives.

"Our goal is simple: give brokers the insights and tools they need to thrive," said Tony MacRae, Bluestone’s chief commercial officer.

"The 2026 Investor Guide is designed to help brokers navigate investor conversations with confidence and deliver more value to their clients."

[Related: How can brokers get more out of record investment lending levels]