What is the maximum that can be borrowed?
The amount which an applicant can borrow will depend on many factors including an “income test” and the “security test”. Once key factor being Income, which includes any rental income derived from the investment property being purchased. Other factors include the value of the property itself since Lenders have predetermined limits; Loan to Value Ratio, (LVR’s), against which they will lend using a particular property. The method by which your borrowing capacity is calculated may vary from lender to lender, but predominantly the two tests are the key factors by which your borrowing capacity is calculated.
