If you’re using a bank’s money as well as your own, a useful rule of thumb is that you can spend about 5 times what you’ve got as a deposit - assuming you can show that you can service the loan. You need to show the bank that you earn enough to afford paying your normal living expenses as well as the costs of their loan to you – both interest on the loan & repayment over time of the loan itself (the principal).While it’s sometimes possible to borrow up to 105% of the cost of a property, borrowing more than 80% usually comes at a price, such as a higher interest rate and lenders mortgage insurance. Not only does that make it more difficult to afford, it’s a real yield killer!So if you’ve saved $80,000, or you have equity in another asset such as shares or another property, there’s a good chance you can look at buying an investment property for about 5 x $80,000 = $400,000, with the bank lending you $320,000.But keep in mind that the bank is unlikely to lend you more money to cover other costs relating to the purchase such as transfer duty (formerly called stamp duty), land title transfer & mortgage registration fees, conveyance, loan application costs, etc. These can be many thousands of dollars, so be sure to factor them in!We can help you pull all of the figures together so you know exactly how much you can spend on an investment property. And we can help you find the best, easiest, cheapest place to borrow the funds from.