Lending leniency

It is really irrelevant whether a property is cash flow positive or negative for finance. Every bit of income helps, but the risk is still the same for the lender and serviceability must be passed.

For a property not to affect serviceability, in theory, it would need to have about a 11% yield. But most lenders will cap yields for serviceability at about 6%.

That means if you have a $100,000 property returning $12,000 pa in rent, for servicing they will use $6,000 max – for loans secured by this property and secured by other property.

the less you borrow the easier it will be, but it depends on where you are getting the deposit money from

That means you are borrowing the deposit

Yes you would be borrowing $500k in that instance.

There are low docs still out there, but you will need to declare an income still – and pass serviceability. If the income is too low you will still not service. You will also have to supply limited evidence of the income which might be bank statements, bas or accountant letter or a combo

It will depend on the circumstances, such as, if PI or IO, what the expenses are, how long left on the loan, type of property, type of tenancy, yield etc

Assuming PI residential rate with minimum expenses it would probably neither improve nor decrease serviceability