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Nah unfortunately not. They will only take a portion of the rent into account - usually 80% of it. They may add a loading to your existing loan repayments too. Cheers Jamie

Borrowing power is determine by your income minus ongoing liabilities/expenses. LVR doesn't come into play (well technically it can for certain deals but there's no point confusing you further). Cheers Jamie

Banks look at both. Whilst they won't take into account 100% of your rental income - they'll generally take 80% of it. The biggest factor impacting investors serviceability right now is how banks calculate the debt you hold with other lenders. Agree with getting a second opinion...