Lending in 2026: Borrowing Power, DTI Caps & Smart Strategy

IN THIS EPISODE Why borrowing feels harder even for strong, equity-rich investors How APRA's DTI caps work and where the 6× income ceiling bites Why investors feel the squeeze before owner-occupiers do How multiple properties compound DTI risk faster than most people realise Why loan structure now matters more than the asset itself The decisions that quietly cap your future borrowing capacity What separates successful investors in this lending environment The one principle: preserving borrowing capacity over time, not maximising it once CHAPTERS 00:21 — Welcome & Introduction  00:52 — Chris Bates: The Origin Story  05:10 — Building Wealthful & the Elephant in the Room Podcast  07:23 — Why One-Stop Shops Are a Problem  13:41 — What Has Changed in Australian Lending?  15:06 — The Royal Commission & Tightening Lending Standards  16:03 — Trust Lending, DTI Warnings & the Banks' Response  17:39 — Investment Lending Is Still Strong — Here's Why  18:13 — The 5% Deposit Scheme & What It's Actually Doing to Prices  19:28 — Apartments: What's Worth Buying and What Isn't  21:58 — What Is DTI and Why Does It Matter Now?  24:16 — Trust Lending, SMSF Lending & What's Coming Next  25:38 — SMSF Lending: The Risks Most People Ignore  28:00 — Capital Growth vs Yield: What Actually Makes You Money  29:14 — Market Cycles & What the Industry Hasn't Been Through Yet  34:14 — DTI + Rate Cuts: The Combined Effect on Borrowing Capacity  35:34 — The Future of Lending: Longer Terms, Interest Only & Tighter Policy  36:40 — The Bank of Mum and Dad: Why It's Now Structural, Not Optional  39:18 — Rate Cuts: Who Benefits and Who Doesn't  41:21 — Ignoring the Banks' Rate Forecasts (And Why You Should Too)  44:23 — Great Advice Starts with Life Decisions, Not Property Decisions  47:45 — Asking Better Questions Before You Buy  50:07 — Playing the Long Game: Trust, Referrals & Client Outcomes  53:31 — Closing Reflections & Where to Find Chris  54:54 — Disclaimer ABOUT CHRIS BATES Chris Bates is the founder and CEO of Alcove, a specialist lending advisory helping Australians structure debt safely and intentionally to support long-term wealth creation. He is one of Australia's most respected mortgage and lending strategists, known for translating complex credit policy, APRA guidance, and real-world bank behaviour into clear, practical strategy. 🎙 Listen to Chris on the Elephant in the Room podcast - https://open.spotify.com/show/3Ge1626dgnmK0RyKPcXjP0?si=121e9b6f3ca54865  🌐 Find out more at https://www.alcove.com.au/ CONNECT WITH JULIAN 🌐 Website: https://searchpartyproperty.com.au/  💼 LinkedIn: https://www.linkedin.com/in/buyersagent-sydney-brisbane-melbourne-adelaide-perth/  📸 Instagram: https://www.instagram.com/juliankhursigara_buyersagent/  📘 Facebook: https://www.facebook.com/investmentpropertybuyersagent/  🎵 TikTok: https://www.tiktok.com/@julian_buyersagent  ▶️ YouTube: https://www.youtube.com/@juliankhursigara_buyersagent 📅 Book a personalised property strategy session with Julian: https://calendly.com/julian_spp/45min DISCLAIMER Invest Smarter Grow Faster provides general information and commentary about property, finance, and investing. It does not constitute financial, legal, tax, or investment advice tailored to your personal circumstances. Before making any financial decisions, you should seek professional advice from a qualified adviser. While we aim for accuracy and quality, we cannot guarantee all information is complete, up-to-date, or free from errors. Past performance is not a reliable indicator of future results. About Julian:Julian Khursigara is the CEO of Search Party Property, a Sydney-based buyers agency helping busy professionals build sustainable investment portfolios with clarity and confidence. With over two decades in customer experience and loyalty across the Asia-Pacific region, Julian brings a sharp, data-driven lens to property investing. What began as a personal passion quickly became a mission—to close the knowledge gap and empower everyday Australians to invest smarter. In recognition of this impact, Search Party Property was named a Finalist for Buyers Agency of the Year, and Julian a Finalist for Buyers Agent of the Year at the 2025 REB Awards.As host of Invest Smarter Grow Faster, Julian draws on his own investing journey and years of strategic insights to demystify property for time-poor professionals. His philosophy is simple: life’s no dress rehearsal, and smart property decisions today create the freedom to choose tomorrow. Through the show, he shares real-world lessons, expert conversations, and proven strategies to help listeners take control of their financial future—one property at a time.  Connect with Julian:Visit the website: https://searchpartyproperty.com.au/ Follow Julian on LinkedIn: https://www.linkedin.com/in/buyersagent-sydney-brisbane-melbourne-adelaide-perth/ Follow Julian on Instagram: https://www.instagram.com/juliankhursigara_buyersagent/ Follow Julian on Facebook: https://www.facebook.com/investmentpropertybuyersagent/ Follow Julian on Tiktok: https://www.tiktok.com/@julian_buyersagent Subscribe to Julian Khursigara YouTube Channel: https://www.youtube.com/@juliankhursigara_buyersagent If you’d like a personalised review of your financial situation, help setting clear investment goals, and a data-driven strategy to guide your property journey—including insights into high-growth areas and a roadmap to financial freedom—book a time with Julian here: https://calendly.com/julian_spp/45min DisclaimerInvest Smarter Grow Faster provides general information and commentary about property, finance, and investing. It does not constitute financial, legal, tax, or investment advice tailored to your personal circumstances. Before making any financial decisions, you should seek professional advice from a qualified adviser.While we aim for accuracy and quality, we cannot guarantee all information is complete, up-to-date, or free from errors. Past performance is not a reliable indicator of future results.