Hi @newcoolkid, as @kinnon said not always. It is a part of the 2 sided equation banks use to assess. LVR is about equity and deposits, DSR is about income and ability to service.

Banks look at risk, so LVR is about their ability to sell the assett and get their capital back if you fail to make payments. DSR is about your ability to make…[Read more]

@kinnon
Thanks for your inputs; does give me enough food for thought.

Not a problem. Sounds like you have a plan, which is good. As Jamie mentioned though, those repayments don’t look quite right. For a P&I repayment on $375k it would roughly be around $1990p/m and IO would be around $1531p/m so a bit of a difference. This may help with doing the feasibility of potential investments you look at, but in saying…[Read more]

@kinnon

Thanks for your response.

The numbers are not for any specific area; they are approximate numbers to draw up how much bank can lend me, they will change once a definite IP has been selected.

I don’t want to negative gear; I am looking at having minimum deficit, positively geared would be ideal. Reason for this consideration is that I…[Read more]