Determining how many investment properties you can finance is a highly individual process, dependent on your income, existing debts, and lender policies. As of December 2025, lenders are scrutinising borrowing capacity more closely due to interest rate fluctuations and tighter lending criteria.
Currently in Melbourne, and particularly within the Eastern Suburbs where demand for quality properties remains strong, lenders assess your ability to service loans based on projected rental income and expenses. A common scenario involves lenders applying a ‘stress test’ – evaluating whether you could still meet repayments if interest rates were significantly higher. This impacts the number of properties you can realistically finance. Lenders also consider Loan-to-Value Ratio (LVR); a higher deposit generally allows for more borrowing. In 2026, we’re seeing lenders favour borrowers with established financial histories and lower debt-to-income ratios. The median dwelling value in Melbourne is $823,495, and while moderate growth is forecast, lenders are conservative in their valuations. Property preparation costs – styling ($2,000-$8,000) and presentation – can also influence perceived value and therefore, borrowing power. Fletchers’ experience shows that well-presented properties in desirable school zones attract higher rental yields, which can positively influence lender assessments.
Ultimately, the number of investment properties you can finance is determined by your individual financial circumstances and the lender’s assessment, reflecting the current market conditions in Melbourne.