Investor activity is booming. And non-bank lender Bluestone Home Loans has created a guidebook to help brokers navigate the market.
"Brokers are telling us they want practical tools to help navigate investor lending," Tony MacRae, chief commercial officer at Bluestone, told Australian Broker. "This guide is about giving them confidence to have those conversations, and find solutions that work."
The "Investor Insights for Mortgage Brokers" guidebook — which draws data from both Cotality, the company formerly known as Core Logic, and the Australian Bureau of Statistics (ABS) — comes amid both surging investor appetite and broker desire to understand how to accommodate investor clients. Investor participation in the Australian property market has almost doubled over the past decade, rising from $23 billion in 2015 to $39 billion in 2025. Investors now account for 41% of mortgage demand, according to the data, and credit growth for investment housing is accelerating at its fastest pace since December 2014.
"Clearly investor confidence remains strong across the housing market despite stretched affordability and relatively low rental yields," said Tim Lawless, executive research director at Cotality.
Other key takeaways from the report include new investor loan commitments outpacing owner-occupier loans by more than six-times, during the September 2025 quarter. Investor lending jumped 13.6% during the quarter, compared with just a 2% rise in owner-occupier loans.
In addition, in 2025, investor activity outpaced 10-year averages in all markets, with the exception of the Australian Capital Territory. The Northern Territory had the largest proportion of investors at 44.2%, signaling a desire to capitalize off the current market momentum.
Meanwhile, the Northern Territory, Perth and Brisbane had double digit annual growth in dwelling values. Property prices in Adelaide, Sydney, Melbourne and Hobart also rose, just not as fast.
Rents are also climbing. But yields remain modest as property prices surge. The national average rental yield stood at 3.6% during the September quarter. Darwin led the pack at 6.3%, followed by Hobart.
Bluestone's guidebook, the first of its kind, is meant to serve as a practical resource for navigating an increasingly complicated market. And with inflation, rising property prices and a persistent housing shortage, the guidebook provides timely insights to help brokers manage the market and make informed decisions.
That's because, despite the headwinds, investor appetite has never been stronger. In the September quarter, investment lending for dwellings rose 13.6%, quarter over quarter, to 57,624 new investor loans, according to the ABS. That's the largest number of investment dwelling loans on record, and equals approximately 12.3% growth annually.
Regulators have already taken note. In November, the Australian Prudential Regulation Authority (APRA) announced new lending limits for high debt-to-income (DTI) mortgage lending. The new rule, starting 1 February 2026, limits high DTI home loans — that is, loans where debt is six times higher than the borrower's income — to a maximum of 20% of each lenders' new mortgage lending each quarter. Each lender can allocate 20% to owner-occupiers in a quarter, and another 20% to investors.
"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]," Lawless said.
But investors — who often borrow more aggressively and at higher multiples — will likely feel the squeeze the most.
Bluestone said the upcoming APRA changes are meant to strengthen lending standards. The non-bank doesn't anticipate it dampening investor appetite in any significant way. It will likely mean, however, that brokers will need to better understand deals and how they're structured.
"Regulatory changes always create questions in the market," MacRae said. "Our role is to help brokers navigate those changes and continue delivering great outcomes for our clients."
Bluestone said brokers should familiarize themselves with the full range of lending solutions so that they can offer clients choice. In addition, by building long-term relationships across the financial community, brokers can leverage these connections over time, positioning themselves as the go-to expert and gatekeeper for clients seeking smart borrowing solutions.
"Embracing non-bank lender solutions could also elevate your reputation with referral partners," the company said. "Accountants deal with tax debt and business restructuring daily, yet many are unaware that long-term lending solutions exist to help their clients consolidate these debts. By bringing these solutions to the table, you transition from being a broker to a strategic problem solver.
"For brokers, every client that walks through your door represents a chance to turn ambition into achievement," Bluestone continued. "The real power lies in knowing the full spectrum of solutions available, and understanding how non-bank lending options can help open doors."
Spotting investor clients is also essential.
The majority of property investors earn a traditional salary. Yet a growing number are turning to non-bank lenders, drawn by increased choice. Opportunities are also rising for self-employed borrowers, including options like self-managed super funds and expat lending.
"Investors come in all shapes and sizes, from small residential portfolios to those with a multi-asset mixed-use strategy," Bluestone said. "It’s important to never look at clients in isolation; always think of what their next milestone could look like and what an appropriate solution might be."
