Signed contract on an IP for 355K, estimate cost of stamp duty and other cost 15K, so the total cost would be around 370K. Based on one of Terry's tip of borrowing 105% and use term deposit as security, we applied to borrow from bank X the full 370K and plan to contribute own cash (as term deposit) for the part over 80% of the purchase price. So theoretically the final components of the purchase will be like below: 80% of 355K = 284K, funded by bank X. 25% = 86K also funded by bank X but actually funded by ourselves through term deposit. Now we have also got approval of a 32K equity loan (new loan separated from OO loan)from our PPOR. What we can do now is: 80% of 355K = 284K, funded by bank X. 32K out of the remaining 86K funded by bank Y who holds our PPOR. remaining 54K funded by bank X but actually funded by ourselves through term deposit. In this case, we are only borrowing 284 + 54 = 338K from bank Y. Compared to what we applied for of 370K, there will be extra money sitting idle from the new borrowing account. Would this cause any issues when refinancing in 2 years time when the IP grows in equity? Or should we just call bank Y to borrow less at 338K?