Structuring the loan

I've got a couple-friend who's got a 1.2mil valued PPOR almost paid off (only 80K left to keep the loan alive). Also got 40K in offset.
They have just paid a cash deposit of an IP they are purchasing for $640K, which will become their PPOR in 12months.
How can they structure the loan without x-colling ? they want to borrow full 640K.

Cheers,

 

see my idea here:
Terryw’s Ideal Loan Structure

 

Step 1: Submit one application against the PPOR property and pull out the equity at 80% or as much as servicing permits. Ensure that this is NOT a top up but a separate loan facility/account. Create 2 splits - one for future investments and one which covers 20% deposit plus stamp duty charges for the new purchase.

Step 2: Submit a separate for the purchase of the new property @ 80% of the purchase.

This will ensure the loans are set up correctly, they are not cross securitised and concurrently you have pulled out equity to use at a later stage.

 

Thanks guys