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How to structure your investment loan correctly from day one

By Steve Chin · March 2026 · 5 min read

When most investors think about their investment loan, they focus almost entirely on the rate. The structure of the loan often has a far greater long-term impact.

Principal and interest vs interest only

Interest-only loans maximise cash flow and keep deductible interest expenses higher. But they do not suit every strategy. We recommend the right structure for your specific goals — not a one-size-fits-all approach.

Cross-collateralisation — why to avoid it

Cross-collateralisation means using multiple properties as security for a single loan. This can significantly limit your flexibility. We structure investment loans to keep each property's security separate wherever possible.

Offset accounts and investment loans

An offset account reduces the interest payable on an investment loan — but it also reduces the deductible interest expense. We structure your loans to maximise both cash flow and tax efficiency.

Getting it right from the start

It is significantly harder to restructure loans after the fact. Getting the structure right before settlement protects your ability to build a portfolio over time.

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