You generally can’t know an exact dollar figure without a calculator or lender assessment, but there are clear ranges and rules of thumb that show how much you can borrow for an investment property and what will cap your borrowing power.

Key borrowing ranges

  • Many lenders will go up to about 80% of the property value for a standard investment loan without extra insurance; some will stretch higher (up to around 90–95%) but usually charge lender’s mortgage insurance (LMI) and a higher rate.
  • For a very rough income guide, someone on a strong salary (for example, around 150k per year) might be able to borrow in the ballpark of 800k–1m, assuming clean credit, modest debts, and a solid deposit.
  • Investment property interest rates are typically about 0.5–0.75 percentage points higher than an equivalent owner‑occupier loan, which slightly reduces how much you can qualify for because the repayments are higher.

What lenders look at

Lenders don’t just ask “what’s your income?”; they stress‑test your cash flow to see if you can handle the loan even if rates rise or rent drops.

  • Income and existing debts
    • Salary, bonuses, other income (and sometimes a haircut on expected rental income, e.g., only counting a portion).
* Other loans, credit card limits (not just balances), buy‑now‑pay‑later, and personal loans all cut into your borrowing power via your debt‑to‑income (DTI) ratios.
  • Expenses and buffers
    • Lenders plug in minimum living expenses (often higher than what you think you spend) plus your own declared spending.
* Many want you to show cash reserves so you could cover several months of repayments even if the property sat vacant.
  • Property and product type
    • Residential investments are usually lendable to higher loan‑to‑value ratios than commercial (e.g., 80% vs ~70% in some markets).
* Multi‑unit and high‑value properties can run into formal loan limits or tougher criteria, especially if you are aiming for a government‑backed or “conforming” style loan in the U.S. or similar capped products.

Typical deposit and LVR rules

The size of your deposit is one of the biggest levers on how much you can practically borrow and still sleep at night.

  • Common patterns in today’s market:
    • 20% deposit (80% LVR): sweet spot for many investors; often no LMI and better rates.
* 10–15% deposit (85–90%+ LVR): possible with some lenders, but expect LMI and higher interest, which will reduce your maximum approved loan size once they run servicing calculations.

* 25%+ deposit: often unlocks sharper pricing on investment loans because risk to the bank is lower.
  • If you already own a home:
    • Many investors tap into existing home equity; lenders often allow you to borrow against usable equity up to about 80% of the home’s value (minus your current mortgage), then use that as deposit plus costs on the investment property.

How to estimate “your” number

Because every lender’s calculator is slightly different (and rules also differ by country), the best you can do without a full application is a structured estimate.

  1. Add up your gross annual income and regular extra income.
  1. List all debts and credit card limits, not just balances.
  1. Decide a target deposit (cash and/or equity) you could realistically put in without draining emergency savings.
  1. Plug these into an investment borrowing‑power calculator from a reputable lender or broker site; these calculators mimic how banks test your repayments at a higher “assessment rate”.
  1. Sanity‑check: if interest is roughly 0.5–0.75% higher than a home you’d live in, make sure the loan still looks affordable under that higher rate and with some vacancy periods on the rental.

Quick Scoop (SEO‑style takeaway)

  • Your maximum investment loan is shaped by income, existing debts, credit score, deposit, and property type, not just the property price.
  • A common ceiling is about 80% of the property value for a mainstream investment loan without extra insurance, with higher LVRs possible at a cost.
  • Online borrowing‑power calculators and a chat with a broker or lender give the closest estimate of how much you can borrow for an investment property in your specific situation right now.

Information gathered from public forums or data available on the internet and portrayed here.