Inside the New Lending Landscape: What WA Investors Need to Know Post-Budget

Keira from Beagl Buyers Agency recently sat down with mortgage broker Susan Croft from Croft Money to discuss the changing lending environment following the latest Federal Budget announcements.

In this insightful conversation, Susan shares what she is seeing on the ground from both lenders and borrowers, how investor behaviour is shifting, and what the latest policy changes could mean for Western Australian property investors. From borrowing capacity and lending trends to opportunities emerging in the current market, this discussion provides valuable insights for anyone looking to navigate the evolving property landscape.

Read the full interview below to hear Susan's expert perspective on what WA investors need to know in the new lending landscape. Thanks, Keira.

Following the federal budget updates, what changes are you seeing from a lending and borrower behaviour perspective?

Since the budget announcements, my phone has been running hot with investor clients wanting clarity around what this means for them moving forward. What I’m seeing is that serious investors still want to build wealth through property, but they’re becoming more strategic with how they do it.

A lot of clients are now exploring different structures, looking at commercial, dual key properties, positive cash flow investments, land and build opportunities, and higher-yielding regional areas. People are realising that strategy matters more than ever right now.

From a lending perspective, banks are also tightening servicing calculators and assessing risk differently, so having the right broker and the right lender strategy can make a massive difference to borrowing capacity and long-term plans.

A lot of people still think the answer is ‘just build’ or buy house and land. From a broker’s perspective, how realistic is that in Perth right now?

There are definitely opportunities in house and land, but I think people underestimate the challenges at the moment. Land supply is tight, build times can blow out, construction costs are still elevated, and finance can become complicated if valuations don’t stack up throughout the process.

I’m seeing a lot of clients diversify their strategies rather than putting all their eggs into one basket. Some are buying established properties for quicker equity growth, others are looking at dual occupancy or regional opportunities for stronger cash flow.

There’s no one-size-fits-all strategy anymore. It really comes down to someone’s income, goals, borrowing capacity and long-term vision.

What’s the biggest finance mistake Perth and WA buyers or investors are making in today’s market?

Probably focusing too much on interest rate instead of structure and long-term strategy.

I see so many people go directly to their bank and assume all lenders assess the same way, when borrowing capacities can vary by hundreds of thousands between lenders.

The other mistake is waiting too long. I’ve had clients purchase six months ago who’ve already seen equity growth and are now buying again. Meanwhile, people sitting on the sidelines waiting for the “perfect time” are often getting priced out or losing borrowing power.

Special Guest | Susan Croft from Croft Money

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As affordability tightens in Perth, are lenders viewing regional or higher-yield WA markets differently, and what should buyers understand before going down that path?

Yes, definitely. Some lenders are more conservative with regional areas, especially depending on the postcode, industry reliance, or property type. Not every lender has the same appetite for regional WA, which is why lender selection becomes really important.

But regional WA can still offer incredible opportunities if done properly. I’ve got clients buying properties with really strong rental returns and positive cash flow, which helps them continue building their portfolios.

The key is making sure the property suits both your finance strategy and your long-term goals, not just chasing a high yield on paper.

If you were advising someone purchasing in WA over the next 6 - 12 months, what would matter most from a finance and lending perspective?

Get your strategy and finance position sorted early.

A lot of buyers are still looking at property first before understanding their borrowing capacity, structure, cash flow position, equity position and future plans. The clients who move fastest and secure the best opportunities are usually the ones who are prepared.

I also think flexibility is important over the next 6–12 months. The market is changing quickly, lending policies are changing quickly, and opportunities are changing quickly. The buyers and investors who adapt and stay strategic are going to be the ones who continue building wealth.

If banks are pulling current pre-approvals, will clients need to reapply?

Yes, as they will need to be reassessed. A lot of people don’t realise that a pre-approval isn’t always a guaranteed approval, especially in a changing lending environment.

If lending policies tighten, servicing calculators change, or a client’s financial position changes, banks can reassess the application. In some cases, clients may need to provide updated documents or even reapply altogether depending on the lender and how long ago the pre-approval was issued.

That’s why I’m having a lot of conversations with clients right now around reviewing their current approvals, borrowing capacity and overall strategy as further changes roll through the market.

It’s also why having a fully assessed pre-approval is so important. There’s a big difference between a quick system-generated approval and one that’s actually been properly assessed by credit.

Right now, preparation and strategy are everything.