Thanks for your reply Richard.

It looks as though I am cross cocollateralising the loans. How would you suggest I go about changing this?

The property we are looking at requires a deposit of $26000. I don't have those sort of funds available to me. The NAB told me that they will give me a deposit guarantee for the $26000, which will cost me $300. I just had been looking through post and could not find anything about these deposit guarantees. How do you put a deposit on a property without cash and just equity?