I applied for investment home loan via broker with Heritage Bank and it has been really bad experience. Initially they took 2 weeks to provide pre-approval and put condition that the rent shouldn’t be less than $390 per week and maximum property price should not more than $450,000. I found an apartment in Sydney which is earning more than $400 per week for over $410k. I reached out to them for unconditional approval and they came back after 1 week saying that this property is in high dense area and therefore they will only consider 60% of rent instead of 80% rent. They have asked to contribute additional $20k as a deposit or they won’t proceed further. I am quite unhappy with Heritage Bank approach here as they should have put high dense area condition on their pre-approval letter. I will lose approx. $1500 in 0.25% deposit, contract review and strata report fee if I don’t proceed. I can organise additional $20k deposit but it leaves me with very little money I put aside for an emergency. Is it normal for banks to consider only 60% of rent? I am only left with 4 more business days before cooling off expires so not sure if I can approach another lender in such a short time. Very stressful situation.