Exciting news! The vendor has accepted my offer.. So now I will have a portfolio!!!! I plan on paying a 12% deposit, 1%LMI and 5% closing costs... The purchase price is $315k... So I will need to cough up $56,700 to close the deal. The problem is I have agreed to pay a $10k deposit in the next week but the refinance of my existing loan (which includes a fully paid split of 50k which I can redraw on) does not settle until the 5th of November. I will need to use the 50k in redraw at settlement of IP2 to close the deal. I have the cash to pay the 10k available at hand, but if I use this 10k to pay the deposit.. I will need to spend the entire 50k on closing costs + higher deposit... To avoid splitting the split loan (aka loan contamination. But I do not want to pay 60k to settle a loan when I could pay $56,700... We are talking about tying up an extra $3,300... It isn't a huge amount but I was wondering if there is anyway of avoiding this? I believe I can recall reading earlier a tax tip which talked about borrowing funds from friend/family (in this case to pay the 10k) then using the entire 50k for deposit/closing costs then paying anything remaining to my friend/family (after the refinance when the loan is split)? If it all gets too tricky.. I can just pay the 60k, it isn't a big deal... But $3,300 could help me purchase that little bit sooner down the track. I have another issue but I shall post a separate topic for that I will be sure to update you with more details once the settlement is complete.