Why Smart Investors Are Rethinking Bank Loyalty and Winning Bigger Because of It

The lending game has changed

The lending landscape in Australia has shifted faster in the past five years than in the previous twenty.

I recently sat down with finance expert and mortgage broker Matt Punter, founder of Punters Finance, to unpack what those changes really mean for investors, developers and anyone trying to grow a portfolio in 2026.

If you’re planning to buy, develop, or refinance in the next twelve months, this conversation is worth your time.

The old rules no longer apply and knowing where the new opportunities are could save (or make) you tens of thousands.

A new era of lending flexibility

Ten years ago, up to 90 percent of Australian lending sat inside the big four banks or their subsidiaries.

If you wanted development or bridging finance, you played by their rules: slow approvals, rigid criteria and almost no appetite for creative deals.

Today, it’s a different world.

Money is flowing into Australia from Europe, Asia and the US, backing dozens of non-bank and private lenders that specialise in niches the majors still ignore.

Names like Judo Bank and Banjo Loans barely existed a decade ago. Now, they’re funding complex deals in a third of the time it once took to get a tentative “maybe” from a bank.

“These newer lenders bank the client, not just the transaction,” Matt says. “They use AI data and technology to assess true income and risk, not just the boxes on a form.”

That flexibility can mean the difference between finishing a project or stalling halfway through.
Matt shared one example where a builder ran over time and budget. A private lender reviewed the end sales, funded the shortfall in days and the project stayed on track. Try getting that outcome from a major bank.

Private funding isn’t risky… It’s just smarter

Many investors still equate “private lender” with “high risk.” Matt says that’s outdated thinking.

“Australian lenders simply don’t fail clients. If one ever struggles, a bigger player snaps them up straight away because of the loan book,” he explains.

For developers, the real risk is inflexibility. Projects run late, costs rise, markets move. If your lender won’t extend or adapt, your profits and reputation can vanish.

That’s why experienced investors now chase terms, not logos. They care about flexibility, loan-to-value ratio and turnaround time. Brand loyalty doesn’t build equity; access to smart funding does.

Rate cuts are coming… what to do now

Behind the daily headlines, the core data tells a simple story:
unemployment is edging higher, inflation is easing and traders are betting on the next interest rate cut before year-end.

That shift changes everything.

When rates drop by even 0.25 percent, borrowing capacity increases for almost every investor. At the same time, lenders are quietly relaxing their internal buffers. The standard 3% serviceability buffer – the safety margin used to test repayments – is quietly shrinking.

“We’re seeing cases tested at 2% and sometimes even one percent for strong borrowers,” Matt says. “If you’ve got a good credit score, no missed payments and you’re under 80 percent LVR, you’re suddenly in a much stronger position.”

Combine that with steady property values and it’s a short window to reassess your equity position before the next market upswing.

The rise of tax-debt funding

One of the most unexpected shifts this year is how lenders handle tax debt.

“I’ve never seen anything like it,” Matt says.

“Lenders are now saying, ‘If your client has tax debt, we can pay it out as part of the refinance.’”

A few years ago, that would’ve been unthinkable.

Now it’s mainstream.

Specialist cash-flow lenders can look to clear ATO debts as part of business or refinance funding, giving builders and self-employed investors breathing space.

It’s not about rewarding poor management – it’s about recognising that good operators hit speed bumps. The right lender helps them over it instead of closing the door.

For tradies, builders and developers juggling multiple projects, that flexibility can mean the difference between momentum and meltdown.

Build your funding runway now

With new lenders entering the market weekly, this is the time to create what Matt calls a funding runway – a clear, pre-approved path to act fast when the next deal appears.

Here’s how:

1. Get reassessed now, not later. Lending policies change quarterly.
   
2. Order updated valuations to see what equity is actually available.
   
3. Split your exposure across multiple lenders to avoid hitting borrowing caps.
   
4. Secure pre-approvals lasting up to 180 days so you can move fast when the right site appears.
   
5. Keep cash accessible in offsets for DA fees and holding costs.

Think of it like a builder staging materials before the truck arrives – preparation beats panic.

Professionals and tradies: a growing sweet spot

Once upon a time, “professional lending” meant doctors and accountants. That’s expanding fast.

Pharmacists can now borrow up to 90 percent LVR with no mortgage insurance.

Lawyers, engineers and even some consultants are joining the same list as lenders chase reliable income earners.

And the newest addition? Tradies.

“Two years ago, construction professionals were off most lender panels,” Matt says.

“Now they’re back. Builders, carpenters, plumbers, sparkies – if they’ve got consistent turnover and solid records, lenders want their business.”

That shift will help smaller operators stay liquid even as conditions tighten.

The value of scale and specialisation

Big-name broker networks like Aussie and Mortgage Choice still dominate awareness, but some of those have limited panels – often just 20 lenders focused on home loans.

Matt’s brokerage works with around 80 lenders, covering every niche: development finance, SMSF, bridging, reverse mortgages, cash flow, professional packages and more.

That scale matters. “When one lender says no, another usually says yes,” he explains.

“Some brokers have never written a private or SMSF loan – that’s fine for mums and dads, but not for active investors.”

The message is clear: work with a broker who lives in your lane. Someone who understands feasibility timelines, settlement pressures and development risk.

The mindset shift: from loyalty to leverage

For decades, Australians saw the big four banks as safe and dependable.
Today, safety comes from having options, not sticking to one brand.

Flexibility is the new security. With lenders competing harder than ever, it’s never been easier to fund a deal creatively and efficiently.

“If you did a finance review three months ago, do it again,” Matt says.

“New lenders, new products, new rules – you might qualify for something completely different today.”

Think of it as a financial health check. Waiting too long to reassess could cost you more than you think.

Action checklist

Final thought

The lending world is changing faster than ever and the old rules no longer apply.

As Matt puts it: “We’re in the most flexible funding environment Australia’s ever seen. If there’s a way to make a deal work, there’s a lender ready to back it.”

Stay curious, keep your paperwork ready, and strengthen your relationships now.
The next opportunity belongs to those who can move first – because they’ve already prepared for it.

About the Expert

Matt Punter is the founder of Punters Finance, a brokerage that specialises in strategic lending solutions for investors, developers and business owners across Australia.
Find out more at puntersfinance.com.au

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