Investor lending shifts as complexity rises

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INVESTOR LENDING in 2026 is not being defined by volume alone. The more meaningful shift is in the type of investor entering the market and how they are approaching growth. Investors today are more varied in how they earn, plan and build wealth. They have moved well beyond the neat payslip-and-single-property borrower that many traditional lending models were designed for. Many are managing mixed incomes, side businesses and trust distributions, while building portfolios that include residential and more specialised assets. This change in profile is influencing how investors approach lending. They are thinking more deliberately about structure, cash flow and long-term positioning. Rather than focusing on a single transaction, they are looking at how each decision supports a broader strategy. For brokers, this means conversations need to go deeper. Investors are looking for someone who will take the time to understand their full financial position and explore options beyond standard pathways. When brokers present the complete picture, it allows lenders to assess the scenario more effectively and apply a more flexible approach where appropriate. That ultimately gives investors greater confidence to move forward.

Pepper Money is a leading non-bank lender founded on a mission to help people succeed. For over 25 years, Pepper Money has supported more than half a million customers with a wide range of really helpful loan options, including home loans, car loans, novated leases, personal loans, asset finance, commercial real estate and SMSF residential loans. Operating across Australia and New Zealand, Pepper Money works through trusted broker partners, white label solutions and direct channels – always guided by the question: “How can we be more helpful?”

Barry Saoud, Pepper Money

Where Pepper Money is leaning in As a non-bank lender, Pepper Money is not restricted by one-size-fits-all policy settings that can limit how investor scenarios are assessed. The company is particularly focused on areas where complexity is part of the transaction. This includes scenarios involving multiple or layered income sources, higher gearing strategies, multiple securities within a single structure, mixed-use or niche asset types, and investors looking to restructure, consolidate or release equity. Pepper Money is also seeing strong demand in SMSF lending, particularly from investors looking to refinance existing structures to improve cash flow or create more flexibility for future decisions.

“Investors want funding structures that recognise how they actually operate, not how a template says they should”

Investor lending in 2026 is evolving as borrower profiles become more complex and strategic. Brokers who adapt their approach and leverage flexible solutions will be best placed to capture growth

Published 04 May 2026

These are often the types of deals that don’t fit neatly within standard credit frameworks. A more considered, case-by-case approach allows for a broader view of the borrower’s position, including their overall portfolio, strategy and long-term intent. By looking beyond the cleanest servicing outcome, it becomes possible to support investors in a way that aligns with how they are operating. How the current rate and valuation environment is shaping decisions The current environment continues to present variability across rates and valuations, which is influencing how investors structure and manage their portfolios. Serviceability remains a key consideration, and investors are increasingly focused on maintaining cash flow resilience. At the same time, valuation movements can impact equity positions and borrowing capacity, so a more flexible approach to structuring is needed. In this environment, assessing risk requires a broader view. Looking at the full portfolio, rental strength and the investor’s ability to adapt their strategy over time provides a more complete picture than focusing on a single metric. There are also solutions available that may not always be front of mind. Tailored repayment structures, approaches to managing valuation changes, and options that provide additional flexibility can help investors navigate short-term pressures while maintaining their long-term position. For example, in SMSF refinance scenarios, Pepper Money is supporting brokers with more streamlined pathways where serviceability can be assessed using the last six months’ repayment history for eligible clients – helping them reduce repayments and stabilise cash flow where appropriate. This includes no application fee on eligible Prime Super Easy SMSF refinances with residential security, for a limited time until 1 June 2026. Flexibility remains one of the defining strengths of the non-bank sector, particularly in a market where conditions are not uniform.

Where we expect growth Over the next 12 to 18 months, several investor segments are likely to drive activity. These include investors transitioning from one or two properties into a more structured portfolio, borrowers seeking stronger yield outcomes through regional or mixed-use assets, and those looking to optimise gearing as part of a longer-term plan. Pepper Money also expects continued activity from SMSF investors reassessing existing lending – particularly as interest-only periods end or rates shift – and looking for ways to improve their current position without disrupting their long-term strategy. These segments reflect a shift towards more deliberate and planned portfolio growth rather than opportunistic expansion. To support this, lending approaches need to reflect how investors are actually operating. This includes recognising income that doesn’t follow a single pattern, structuring for multi-property ownership, and ensuring policy settings can accommodate more complex scenarios. Non-bank lenders play an important role in this space, as they can adapt more quickly to emerging borrower needs and changing market conditions.

The role of digital tools Digital tools are also influencing how investors engage with the lending process. Access to serviceability modelling, faster scenario feedback and clearer loan tracking is giving investors greater visibility earlier in the journey. This is helping them make more informed decisions and set clearer expectations. However, there is still a gap in how consistently these tools are used. Some investors are not fully utilising available tools to test scenarios, and some brokers have not embedded them into their day-to-day processes. When used effectively, digital tools can streamline administrative tasks and create a more efficient experience. This allows brokers to focus more time on structuring, strategy and client outcomes, which is particularly valuable in more complex investor scenarios. What brokers should do now Brokers who invest in capability will be best positioned to support investor growth in the current environment. This includes developing a stronger understanding of how non-bank lending can support long-term portfolio strategies, asking more detailed questions around cash flow and risk appetite, and using digital tools as part of the core process. It also means identifying refinance opportunities within existing portfolios, particularly in SMSF structures, where improving cash flow today can create more flexibility for future investment decisions. Building relationships with lenders who take a practical, case-by-case approach is also critical, especially as investor scenarios become more complex. At the same time, relying solely on traditional processes or waiting for standard lending pathways to accommodate more complex borrowers may limit opportunity. Investor behaviour has evolved, and lending approaches need to evolve alongside it. Brokers who adapt their approach and position themselves as long-term partners will be better placed to capture the next phase of growth in the investor market.

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“In SMSF refinance scenarios, we are supporting brokers with more streamlined pathways where serviceability can be assessed using recent repayment history for eligible clients – helping them reduce repayments and stabilise cash flow where appropriate”

Barry Saoud, Pepper Money

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