The maximum you can borrow against an investment property purchase is 95% of the purchase price of the property, plus the cost of the mortgage insurance which, you can capitalise on top of the loan
Once you borrow greater than 80% loan to value ratio (LVR), you will pay Lenders Mortgage Insurance (LMI). Most lenders will allow you to capitalise the LMI cost on top of the base loan amount
If borrowing greater than 90% LVR, lenders will require that you demonstrate genuine savings to the value of 5% of the purchase price. This 5% can be held in equity in other property
If you are considering the purchase of an apartment; you need to be aware that the majority of lenders prefer internal size to be greater than or equal to 50 square meters (excluding balconies and car spaces)
