Building a property portfolio is a powerful wealth strategy, but structuring your loans correctly is just as important as choosing the right property. Whether you’re an investor with a few properties or planning to grow your portfolio, understanding how to structure multiple loans can help you maximise tax benefits, improve cash flow, and protect your assets.
When you buy one or more properties, your loan structure determines:
How much equity you can access
How exposed you are to financial risk
Your ability to borrow again in the future
How your cash flow is managed
How well your tax strategy aligns with your investment goals
Poorly structured loans can limit your borrowing capacity or leave you with unnecessary cross-collateralisation that’s difficult to unwind.
Cross-collateralisation means using multiple properties to secure one loan. While banks may encourage this, it can restrict your flexibility. If you want to sell or refinance one property, you’ll likely need lender approval and property revaluations across the whole portfolio.
Tip: Use separate loans for each property with standalone security. This way, each asset can perform independently without tying up your entire portfolio.
“To better understand the risks of cross-collateralising loans, visit ASIC’s Moneysmart guide on home loan structures.“
You can use equity from one property as a deposit for another without cross-collateralising. This is done via a separate split loan or line of credit, secured only against the existing property.
This strategy keeps your properties legally and financially separate while allowing you to grow your portfolio using existing capital.
Splitting your loan into multiple parts (e.g., fixed and variable) gives you:
Flexibility to repay or refinance one portion without touching the other
The ability to hedge interest rate risk
More control over redraws and offset accounts
Splitting becomes even more valuable when juggling multiple loans across different investment goals.
For each loan, consider whether an offset account or redraw facility is better suited. Offset accounts offer more flexibility and potential tax advantages, especially when using borrowed funds for future investments.
Offset tip: Use an offset account for loans on investment properties to preserve tax-deductibility if you ever move funds around.
“Learn how offset accounts can help reduce interest on your investment loans.”
Many investors choose interest-only loans to maximise cash flow and tax deductions, especially in the early stages of portfolio building.
However, it’s essential to align this with your long-term goals. As properties appreciate, switching to principal & interest may help you reduce debt and increase equity over time.
The right loan structure isn’t a “one size fits all” solution. It needs to be tailored around your income streams, investment goals, tax position, risk appetite, and future borrowing potential.
That’s where working with an experienced mortgage broker makes all the difference.
At Kanova Loans, Anitha Varghese brings over 10 years of hands-on experience helping property investors build and restructure portfolios that perform. With deep knowledge in loan strategy and investment lending, Anitha has guided countless clients through smart, scalable lending solutions that align with both short-term cash flow and long-term growth goals.
Whether you’re just getting started or expanding a complex portfolio, Anitha can review your existing setup and create a customised structure that gives you more flexibility, borrowing power, and peace of mind.
Mixing personal and investment loans in one facility
Not reviewing loan structure after each property purchase
Relying on one lender for the entire portfolio without considering diversification
Setting and forgetting interest-only periods without a plan
Working with a mortgage broker gives you the power of choice, personalised advice, and ongoing support — all at no extra cost. Whether you’re buying your first home or looking to refinance, partnering with a broker like Anitha Varghese at Kanova Loans can make all the difference.
Strategically structuring your loans gives you the financial agility to expand your portfolio, manage risk, and take advantage of changing market conditions. The earlier you get this right, the more options you’ll have as your investment journey unfolds.
If you’re planning to grow your property portfolio or need a review of your existing loan structures, speak to a specialist mortgage broker who understands how to build long-term wealth through property.
At Kanova Financials, we specialise in tailored lending solutions for property investors. Let’s chat about your goals and create a structure that works for your future. »
Disclaimer: This guide is for general information only and does not constitute financial or legal advice. Always check with your local council, licensed broker, and conveyancer before making decisions.
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Kanova Loans helps Australians access home, car, and commercial finance through expert guidance and top lender comparisons — led by trusted senior mortgage broker Anitha Varghese.
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