Julian Finch: Why you should you use a different lender for your investment property

With more Australians entering the property investment market, mortgage expert Julian Finch is warning that using the same lender for both your home and your first investment property may not be the smartest move. While it might feel familiar and convenient, Finch said this decision can cost you money, flexibility and future borrowing power.
 

"If you think asking your bank who you have your home loan with for a loan to buy your first investment property is the best course of action, you may be surprised to find that this could work against you," Finch said.
 

With decades of mortgage brokerage and commercial lending experience, Finch has helped thousands of Australians successfully navigate the lending process. Finch Financial has one of the highest loan approval rates in the country, often securing approvals within minutes.
 

One lender doesn't fit all purposes
 

"Just because your bank offered a decent deal on your home loan doesn't mean they're the best choice for an investment property," Finch said.
 

"Investment lending is an entirely different strategy. It has different goals, risk profiles and repayment approaches and not all lenders are equipped to support that. Many are certainly not as competitive either."
 

Finch explained that while using the same bank may speed up the application process and reduce admin, it often comes with hidden drawbacks. Many lenders offer less competitive rates for investment properties or assess rental income more conservatively, which can reduce your borrowing capacity. Some even insist on tying your home and investment property together through cross-collateralisation, which creates unnecessary risk and makes it harder to refinance or sell one property without involving the other.
 

The risks of staying loyal to your current bank
 

According to Finch, sticking with your current lender may seem like the path of least resistance, but it can actually create long-term complications. For example, if you later want to purchase a second investment or refinance to access equity, you may be restricted by your lender's policies or borrowing caps. You could also miss out on more investor-friendly options such as interest-only repayments, offset accounts or broader income assessments.

"Every investor has different financial goals and circumstances. Some need to maximise borrowing power, others need to prioritise cash flow or debt structuring. A single bank product can't meet every need."
 

Failure to connect with the right lender can impact your wealth journey
 

Finch said one of the biggest mistakes new investors make is not connecting with the most appropriate lender. This is where mortgage brokers play a crucial role. Unlike banks that can only offer their own products, brokers assess multiple lenders to find the right match for your financial
objectives, future plans and risk tolerance. Brokers also understand how to work with complex borrower profiles, such as self-employed clients, those with multiple income streams or investors looking to build a long-term portfolio.
 

"A broker takes the time to understand your full financial picture," Finch said.
 

"They look beyond the first purchase and help you structure your loans in a way that keeps future options open. They also work with hundreds of lending products across many lenders and have a good idea of which lenders will be the most ideal."
 

Investment loans are not one-size-fits-all
 

Finch believes that every investor needs to approach loan selection with the same diligence as they would selecting the right property. Choosing a lender shouldn't just be about familiarity, it should be about strategy.
 

"Your finance structure will determine how fast and far you can grow your investment portfolio," Finch said.
 

"It's one of the most important decisions you'll make as an investor and getting it wrong can close doors before you've even started and inhibit your ability to scale into other properties and opportunities."
 

About Finch Financial Services
 

Based in Hurstville, NSW, Finch Financial Services has been servicing Australian families and businesses with home, personal and commercial loans as well as asset finance services since 2015. Ranked amongst the top five percent of brokerages in Australia according to data from the MFAA, Finch Financial Services is a leading brokerage and family-owned business that specialises in finding its customers loans that are tailored to their needs and goals.

https://finchfinancial.com.au/