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How much can you borrow to invest in property?

Before you start looking for an investment property, you’ll need to look at your financial situation and work out how much you can borrow. It’s a long-term investment strategy, so you’ll need to make sure you’re in a position to weather the highs, lows and steady periods.

Some factors to consider include:

This is the most important factor in determining how much you can borrow on your investment home loan. You’ll need to be able to cover the repayments on your loan if the property is unoccupied, or if the rent doesn’t cover the full mortgage repayment.

Usually, it’s best if mortgage repayments on your current home and investment property don’t exceed 30% of your after-tax salary. Use our calculators to get a good idea of what your repayments will be once you buy an investment property.

How much equity you have, will may be taken into consideration when working out how much you can borrow to invest, you may be able to use this equity to put towards the purchase of an investment property.

If you need to borrow more than 80% of the property value, you’ll need Lenders’ Mortgage Insurance. (60% for low doc loans.)

Your history of mortgage repayments and other debts are also taken into consideration when you apply for an investment home loan. Consider consolidating and paying off other debts, so you can free up additional funds to put towards your current home loan and investment property.

Get conditionally pre-approved

Get conditionally pre-approved^ so you know how much you have to spend before you start looking for an investment property.

Important information

^ If you do not find a property and accept our formal loan offer within 90 days of the conditional pre-approval date, we will need to obtain from you updated financials and confirm that the loan still meets your needs and financial objectives.