Lenders apply serviceability tests that often use an interest rate higher than your actual loan rate. That buffer protects borrowers and the system but can feel conservative when market rates stabilise.

Investors should model their own stress case: rates several percentage points higher, a month or two of vacancy, and lumpy repairs. If the property only works at the optimistic boundary, it may be too tight.

Fixed vs variable splits, offset accounts, and loan product features change outcomes materially. A mortgage broker can compare options across institutions.

Educational content only—not credit advice.