Hi there! Congrats on your decision to start looking at investment properties – great way to build wealth. Firstly, with regards to calculating how much you can borrow you are correct…however you can sometimes take the banks to 85% with no mortgage insurance if you have a strong application. With regards to the taxation element, it is easiest to have a sub-account, or split account for your loan, thereby giving you a separate loan number and account for the tax deductable component. You will then have the option of taking out another loan secured by the investment property. Hope this helps, let me know if this doesn’t make sense..