At the moment we are a little confused of where to go and what to do. Recently I missed out on a deal due to what my current broker states was serviceability constraints. Here is the run down of where we are atm. 1 kid + 1 on the way 85k single income. wife just gave up working for herself due to bub number 2 due shortly. PPR 470k - 200k debt (I/O) with 100k in offset IP $420 - 380k I/O - $360 rent / Currently the IP is cross x with the PPR with the CBA I have spoken with my current broker I'm almost certain whist he has looked after us and is helpful, I don't think moving forward he is able to meet our goals. After numerous conversations I have established that he advocates cross x for all IP purchases and sees no benefit in diversifying lenders. He sets all his clients up this way and this how he has secured numerous IPs himself. From all the reading I have done, cross x should be avoided under normal circumstances. Apparently a $350 discard fee can remove the PPR from the IP. I would like to get an idea of you guys think...what sort of borrowing capacity would be possible with another lender...also happy to take some other general advice. At this stage I would be looking for CF over CG as negative gearing isn't sustainable in the short-medium term for us.