Hi all, Just found out an interesting point from my lender (ANZ) when applying for a loan for another investment property. We have a PPOR and IP, both with IO loans. Applied for a 3rd IO loan, and the lending limit was lower than I expected. This was due to the fact that the bank calculates our serviceability for IO loans based on paying the loans off as if they were P&I over 20 years (we have loans for 30 years, with 10 years IO). I haven't come across this being talked about anywhere here, or elsewhere for that matter - is this normal? Or just ANZ? I spose from the banks point of view it makes sense. We went IO loans to free up cash to buy more IP's, but from the banks point of view, it has actually hindered us. We tested this, and could borrow a lot more if the 3rd loan was P&I. ($100 a week higher repayments though, but gave us around $100k more borrowing power). Have others experienced this? Anyone decide to go P&I because of this reason? Cheers, Red.