Page 11 - Loan Structure Solutions

Loan limit Loan Purpose Loan Security Lender Comment
balance name
$370,000 $370,000 Home loan Joint Home Lender A Offset 1
only
$300,000 Nil 20% Keith Home Lender A Offset 2
deposit + only only
costs
$622,830 $622,830 Total Keith IP 1 only Lender B No offset
acquisition only
cost
$622,830 $622,830 Total Keith IP 2 only Lender C No offset
acquisition only
cost
Note: The $300,000 deposit loan can be closed particularly after the
home loan is repaid so that Keith and Joanna will hold the
unencumbered title to their home (which is a common goal for most
people).

In essence, this loan structure uses the equity in Keith and Joanna’s home for
a limited period of time until the investment properties accumulate so
efficient equity to secure all investment loans.

4) Funding deposits

You will note that in the above case study, Keith and Joanna
established one deposit loan that was used in relation to two separate
investment properties. Normally, we would recommend splitting loans
by property and purpose so that you can separately identify what debt
relates to which assets. To do this we would have two loans for
$150,000 each secured solely by the home. However, in the interest of
simplicity, we only used one loan – particularly since we intended on
cleaning up the structure in 4 to 5 years time.

In some circumstances, I would recommend splitting out the deposit
loan. This would be more important with more complex structures and

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