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I have spoken to a broker, and he ran the scenario through 2 banks, and both came back yielding a borrowing power of about 200K for the IP, on top of the existing mortgage. BTW, the LVR is way under 80%.

a) errors in input? this is done using 3 different bank's website calculators. They all only offer about an additional ~200K in borrowing power. b) I am paying mortgage on my PPOR, thinking of procuring an IP. Just surprised that the borrowing power with the same amount of payment for PPOR...

Does anyone know how banks calculate the borrowing power for an investment property? Reason being it appears lot lower than a person's primary place of residence. Let's say I make $80K per year, with no other debts. Most banks would allow me to borrow about $450K, which equates to about...