In your suitation where you have free equity in your home, i would go to the bank for the full 105% of the purchase price. This will cover sd, legal and fees. Interest for income genaeating asset will be tax deductible. Then place your deposit and sd into home loan to reduce your principal and interest payable. Net debt should be at same amount. Just a bigger deductible portion.
When buying investment ppty, best to buy some where close to home espehilly if you are handy. Plummer cost around 150 per call out and if you can fix stuff then cheaper for you. Also local knowledge will always gI've you an advantage.
If you found a good rental the rent and tax refund should cover the outgoing with a small contribution. Also go for interest only and any excess funds straight back to home loan.
