Property investors are becoming increasingly open to non-bank lenders as rigid traditional banking processes leave a significant portion of borrowers feeling locked out of the market.
According to the newly released Consumer Pulse Spotlight: Property Investors report by Agile Market Intelligence, sponsored by Bluestone Home Loans, 42 per cent of property investors are now open or very open to exploring lending options outside of a traditional bank – nearly double the rate of the general population.
The shift comes as traditional lenders face criticism for overly complex processes. The report, which drew on more than 18,000 survey responses, including 1,574 property investors collected in March 2026, revealed that 38 per cent of investors who sought investment lending found the process with a traditional lender harder than expected.
Furthermore, 40 per cent of property investors reported feeling “shut out” by major banks, with 8 per cent abandoning their mortgage plans entirely due to the difficult experience.
When asked what would make investing easier, respondents pointed to a need for flexible criteria, faster approvals, and processes that do not exclude non-traditional borrowers, alongside trusted advice without jargon.
Specific feedback from investors highlighted these frustrations, with respondents calling for “clear and transparent lending criteria”, a “faster, more streamlined approval process”, options to use a no-deposit loan or “being able to use rental agreements as collateral”, and loans that offer options for older borrowers (not “aged out”).
Part of the frustration stems from structural differences in investor income. According to Bluestone, property investors are almost twice as likely to be self-employed compared to the general population.
Tony MacRae, chief commercial officer of Bluestone Home Loans, said that investor ambitions remain strong, but the borrower experience must evolve to match their realities.
“Property investors have always played a critical role in Australia’s housing market. What’s changing is not their ambition, but the way they experience the lending process,” MacRae said.
“At Bluestone, we spend every day working alongside brokers who support investors with diverse income streams, complex structures, and long-term wealth strategies. Many of these clients are financially capable and highly motivated, yet still find themselves slowed down by rigid criteria or processes that weren’t designed with their reality in mind.
“What stood out to us is how open investors are to looking beyond the majors, especially when they understand their options. Nearly four in 10 have felt the banks made it too difficult. More than four in 10 are open to alternative lenders. Those numbers reflect conversations we’re seeing every day across our broker network.”
While awareness of non-bank options is historically low among the general public – with 65 per cent either unaware or lacking enough knowledge to consider alternative lenders – that figure drops to just 39 per cent among property investors, proving they are highly receptive to alternatives once presented.
To capture this segment, the report suggests mortgage brokers look to broader referral networks.
Indeed, it found that nearly 60 per cent of investors have used at least one professional adviser, compared to around a third of the general public. Currently, accountants are the most common point of contact at 46 per cent, followed by financial advisers (23 per cent) and mortgage brokers (21 per cent).
Michael Johnson, director of Agile Market Intelligence, said the data highlights a clear gap between investor ambitions and traditional lending appetites.
“The findings paint a picture of a motivated, financially capable segment that is actively looking to grow, but often finding traditional lenders unwilling or unable to help,” Johnson said.
“For brokers, the opportunity is significant. A third of property investors plan to purchase in the next 12 months. Nearly four in 10 have felt shut out by the banks. And more than four in 10 are open to alternative lenders, they just need someone to show them the way.”
Note: Fieldwork for the report was conducted in March 2026, prior to the federal government’s May 2026 budget announcement of proposed changes to capital gains tax on investment properties.
[Related: Bluestone tops 1.2bn in February loan applications]
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