🎧 This episode of The Property Trio Podcast was sparked by a fantastic listener question, and it quickly opened the floodgates. The Trio dive into the mortgage questions borrowers ask every single day – plus a few curveballs that catch even experienced investors off guard.

The episode kicks off with a real-world example from listener Callum, exploring how positively geared investment properties affect borrowing capacity. With two identical incomes and expenses, but one investor holding a positively geared asset, Dave breaks down how lenders actually assess income, debt, buffers and shaded rental returns. The result? Positive cash flow can help, but how much it helps depends entirely on the lender’s calculator.

From there, the trio unpack how short-term rental income, including Airbnb, is treated by banks. Despite strong yields, lenders often take a conservative view, shading income heavily or excluding it altogether. This highlights why lender choice and expert guidance matters more than most borrowers realise.

The conversation then shifts into interest-only lending, future-proofing your home loan, and why preserving debt can sometimes be the smarter long-term strategy, particularly when a home may later become an investment property. Dave and Mike explain how poor loan structuring today can lead to lost tax deductions, forced sales, and major regret down the track.

The episode finishes with a critical warning around tax deductibility traps when selling a home, paying out loans, and attempting to “recreate” investment debt later. Once a loan is closed, deductibility is gone…. unless the structure is handled correctly at the time.

If you’ve ever wondered why borrowing capacity varies, how lenders really think, or why mortgage strategy matters more than interest rate, this episode is essential listening.

Related episodes:

• Ep. 250: Investment Borrowing Masterclass – Maximise Tax Deductions and Advanced Mortgage Strategies for Long-Term Wealth Creation
• Ep. 287: How Government Interventions Are Shaping the Property Market – The Real Impact & Side Effects of Property Regulations
• Ep. 304: How to Increase Borrowing Capacity— Strategies to Maximise Your Property Budget, Refinance, Access Equity & Grow Wealth with Smart Spending
• Ep. 306: How to Increase Borrowing Power – How Kids, Rate Cuts and Variable Income Impact Property Buying Potential, Equity Access & Refinance
• Ep. 309: How to Boost Borrowing Power – Debt Management Strategy for Smart Property Decisions & Unlock Investment, Home & Refinance Opportunities
  

Upcoming ep: #345: 2025 predictions review

And… don’t forget our LIVE Podcast Event – Thursday 5th March at Latrobe Golf Club – 8 Farm Road, Alphington, VIC.

Early bird tickets are now live, or our listeners can purchase a VIP ticket and meet the hosts in person before the event starts. Every attendee will receive a book that Cate has co-authored, and VIP attendees will get an additional copy of Dave’s book.

This will be an intimate live recording with the three of us…. real conversation, audience questions, a bit of banter, and the kind of discussion we usually only have behind microphones.

If you have enjoyed the podcast, this is a chance to experience it properly in the room. As a special bonus, we’ll also have the Property Professor himself as MC!

You can access tickets here.

Places are limited, and once early bird tickets are gone, remaining tickets will be full price.

We would love to see you there!

Warmly,

Mike, Cate and Dave