Thanks Terry for pointing my mind towards these issues. Yes, hasnt considered these points.

[/quote] There are a few issues you haven't considered. I am assuming the owners of both properties is exactly the same? ie mum/dad own PPOR and mum/dad own investment?

Woolies2122 – yes, the PPOR is owned jointly by myself and wife (that ownership type…[Read more]

Hi Richard – actually it is my intention that the PPOR property is used as security for both loans (original loan to buy the PPOR 2 years ago; and the new one to acquire the investment property). By doing, the investment property title is not mortgaged to the lender bank. Earlier it was asked why I chose to used the PPOR as collateral for both…[Read more]

Thanks Jamie and Derek. 

Yes, it is cross collateralising the PPOR loan and Invt Property loan. I came up with this because this allows me to keep the investment property title unencumbered. Another way of seeing it is that the bank is not over collateralised. The alternative to this structure is a 3-loan:

loan 1: PPOR loan of 230k, secured by…[Read more]