Cross collateralising PPOR and IP properties - which rate do I get?

Hypothetical proposition: say I want to refinance PPOR and one IP to ANZ and fix loans for two years. OO fixed rate is 2.19% and investment rate is 2.49%. if PPOR and investment property are cross-collaterised, would the resulting loan have owner occupied interest rate (i.e lower rate), or a mix of owner occupied and investment (higher) interest rates?

If loans for both properties are comfortably under 80% of individual property values, would it be difficult to uncross the cross-collaterised loans/properties with the same bank?

 

Anz looks at what the loan is used for so it shouldn't change things. If you are talking about one big loan that would be a tax disaster.

 

Thanks @Terry_w, this would be set up by having different accounts for each property, don't see any tax related issues

 

@Rolf Latham, if we forget about equity release, just set and forget for two years, then a refinance to another bank would uncross if ANZ become difficult.
What would be the other reason not to cross in current circumstances?

 

What advantages do you see?

 

Giving too much security for the loan.

 

Having a large investment loan at OO rates (if I understand your question?)

 

Each loan will be at its respective rate. The benefit only occurs at OO rates if you can blend the loan. Then it makes no tax sense which is what Terry said. What advantage ? None.

 

Thanks Paul

 

I don't think ANZ will allow that.