Can anyone tell me if its possible to use some of the equity from my Mum's mortgage free property to pay off some of my own mortgage? I have a negatively geared investment property with a mortgage of around 400,000 and my Mum owns an investment property outright worth around 500,000. Is Mum able to lend me say 100,000 of her equity to reduce my loan amount and make my property neutrally or positively geared? If so, is it best to gift the money to me or to set up a loan agreement? Would the cost of a line of credit be no less than that of a home loan interest rate? If any one has looked into this or has some info I would much appreciate a discussion to help solve this problem.