Loan Splits, Refinancing and Tax

Say for instance I have a property "property A" with the following loans and loan purposes:

• Loan 1: Original 80% loan for property A
• Loan 2: Equity Topup. Used for purchasing costs and deposit on property B
• Loan 3: Equity Topup. Used to purchase shares in partner's name

Right now I'm getting separate loan statements for each loan, so I can easily allocate the interest payments to the respective investment come tax time. Very clean and straightforward.

If I refinance property A, my understanding is that I'll lose the loan splits and they'll get rolled up into a single loan. Come tax time, my accountant advised that I'll need to apportion the interest expense based on the original loan amounts. Having a single loan for three different purposes seems a little messy to me. Is there a cleaner way by any chance? Or am I overcomplicating this?

Have any others come across a similar situation?

 

Very common and there is a simple solution - refinance yet maintain the same split.

 

If possible choose a shorter repayment period, I think that will be better

 

It's very easy to maintain the splits after the refi - there's absolutely no need to roll it all into one.