I have saved money to purchase a Main Residence (PPoR) next year. In the meantime I would like to build two townhouses. I have enough borrowed funds for one and enough cash to build the second townhouse. However, I don't have enough security to cover a second loan. Say the second townhouse will cost $300k to build and I have $300k cash. I would like to access a product (such as a term deposit) where I can deposit $300k and then borrow $300k using the term deposit as security. The timing is likely to be around 6 months. Once construction is finalised, I would take out a standard investment loan with the townhouse as security, pay back the cash secured loan and get my term deposit back (obviously at the end of the term). Then I can use the funds to buy my Main Residence next year. For example: First Option offers a Cash Secured Loan which may be approved for any worthwhile purpose (within the Credit Union’s lending guidelines). A Cash Secured loan is a loan that is fully secured by Fixed Term Deposit held with First Option Credit Union. First Option Fixed Term Deposit example interest rates are: 2.50% 6 months 2.75% 12 months First Option Cash Secured Loan (using the Term Deposit as security) interest rate is 5.35% For 6 months, the effective interest rate is 2.85%. For 12 months, the effective interest rate is 2.60%. http://www.firstoptioncu.com.au/loans-personal-loans-cash-secured-loan.html Does anyone know anything about this and what other options there might be for this type of scenario? Thanks!