I have been reading some old threads from the infamous Dazz on SS. It would be great to have him contribute here again! For those budding CIP investors, I advise you to have a read as well. Dazz did a lot of cross collateralizing during his earlier years, using his PPOR and other RIPs. His thoughts were to buy your PPOR cash and then use that title as collateral for CIP lending. The one advantage I see with this is that the full CIP loan, say 100% is tax deductable, but does it also increase leverage as another advantage? I have never been a fan of cross collateralizing as I think it limits you down the line with the lender, most mortgage brokers here seem to agree. Here are a few scenarios: Assume you have $1m in cash, ignore stamp and transaction costs Scenario 1 - Buy PPOR at $1m cash, use this as collateral for a CIP i.e. give bank the title. Could you use the full $1m and leverage up to a $3.333m CIP with 100% mortgage? (i.e. use the $1m PPOR as security for what would have been the 30% deposit) or would they limit you to 80% of the PPOR's value as security for the effective 30% CIP deposit, numbers working out to the same as the below then? Scenario 2 - Buy PPOR at $1m - 20% deposit and 80% LTV. Use $800k left to buy CIP worth $2.66m (70% LTV). Scenario 3 - Buy PPOR at $1m cash, refinance this with 80% mortgage and then use $800k refinanced to buy CIP worth $2.66m (70% LTV). This should allow the full interest to be deductible. What are the advantages/disadvantages of the above? Is it possible to increase leverage using cross collateralizing as in scenario 1?