Page 9 - Loan Structure Solutions

• Offset 1: this is linked to the home loan and Keith and Joanna’s
salary income should be deposited into this account. This offset
will be used to pay for living expenses and home loan
repayments.

• Offset 2: This account will be in Keith’s name only and will be
linked to the deposit loan. Any unused loan funds will be
deposited into this account and rental income and loan
repayments should go to/from this account.

Once this loan has been established, Keith and Joanna are ready to buy their
first investment property. On the day of purchase they will draw the 10%
deposit from the unused $300k loan.

Step 2: Establish 80% loan

Once they have purchased their first investment property they can
establish a third loan to fund the remaining 80% of the purchase price.
Their loan structure will look like this after the investment property
purchase is completed.

Loan limit Loan Purpose Loan Security Lender Commen
balance name t
$370,000 $370,000 Home loan Joint Home only Lender A Offset 1
$300,000 $142,830 20% deposit Keith only Home only Lender A Offset 2
+ costs
$480,000 $480,000 80% loan Keith only IP 1 only Lender B No
offset
You will note that we have drawn a 20% deposit ($120k) plus costs
($21,330 for stamp duty, $1,500 for legal fees) from the $300k
deposit loan. You’ll note that we used a different lender (Lender B)
for the 80% loan.

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