Hi @Terry_w, I read your advice on setting up the loan and trying to avoid cross collateralize the properties, etc….they are very helpful! I’m just thinking or should I say that I’m in the situation below (guess there are other people are on the same boat) 1) I don’t have 20% deposit to secure an IP, 2) and I don’t want to pay LMI to get a loan for the IP, as the ongoing cost is just too much; the only thing is to use my home as the equity, there are funds in redraw to show that I’ve made extra repayments, where the extra funds should not be redrawn to purchase an IP (as your advice that we shouldn’t use cash to purchase an IP). but I don’t want to go through refinance to take out the equity (I suppose refinance is the only way to release some equity?), again too much cost for refinance. So in this case, the bank of course wants to use my existing home as an extra security for me to borrow money to buy an IP, and I want to use the same bank as they do offer good interest rate (I cannot use another bank as I cannot show I’ve got 20% deposit and all the above reasons…). I’m guessing in my situation, I’ll probably just have to use my PPOR and IP as securities to borrow money? so tough luck and fussy me, does it mean I'll just have to suck it up with the cross collateralization on both properties, surrender more power to the bank, is this the only way out there?? I just cannot have the ideal loan setup as suggested by you, Terry.... do others find it's just very hard to find a new lender when the current lender has offered a pretty good rate, and when you just don't have enough deposit..?