When you already own multiple investment properties, the next step isn’t always buying more — sometimes it’s restructuring what you already have to unlock capital and position yourself for the next purchase. That’s exactly the challenge Debora and Paulo brought to Lagos Financial.
The Challenge
Debora and Paulo are experienced property investors based in Adelaide. They own their primary residence along with two apartments, one of which is managed through a family trust and generates Airbnb income. Their goal was to refinance their home loan and access $380,000 in equity from their owner-occupied property — funds they planned to use as a deposit toward a $1 million investment property.
The complexity lay in structuring the refinance in a way that maximised tax efficiency without sacrificing cash flow. With multiple loans already in place, any restructure needed to be carefully designed to avoid cross-contamination between deductible and non-deductible debt.
Our Strategy
Victor recommended the Macquarie Bank Offset Home Loan as the most suitable product for Debora and Paulo’s situation. Macquarie stood out for several reasons: it offered the lowest available rate among the options considered, a significantly lower annual fee ($248 versus $395 at comparable lenders), and the ability to hold multiple offset accounts at no additional cost — a feature that supports sophisticated cash flow management across multiple loans and entities.
The loan was structured across several splits:
- The owner-occupied loan was reset to a 30-year term with principal and interest repayments, reducing monthly outgoings and improving cash flow across the portfolio.
- The equity cash-out portion and investment loan splits were set to interest-only repayments for three years. This keeps repayments on the deductible debt low while the tax deduction is maximised.
- The new investment property loan was structured on principal and interest — accelerating equity build on the new asset from day one.
Debora and Paulo were also well-informed about the implications of offset versus redraw facilities, and the structure took full advantage of offset accounts to keep liquid funds working to reduce interest without compromising the deductibility of the investment loans.
Macquarie’s quick credit turnaround time was also a practical advantage: in a competitive property market, the ability to act swiftly on a purchase opportunity matters.
The Outcome
With the refinance complete and $380,000 in accessible equity, Debora and Paulo are positioned to move quickly on a $1 million investment property. Their loan structure is optimised for both tax efficiency and cash flow, with interest-only periods protecting liquidity while they establish their next investment. The multiple offset accounts give them granular control over how cash sits across the portfolio, reducing total interest costs without any loss of flexibility.
Key Takeaways
- Loan structure matters as much as the rate. Splitting loans across owner-occupied and investment purposes — and choosing the right repayment type for each — can have a significant impact on tax outcomes and cash flow.
- Interest-only loans on investment debt aren’t a shortcut; they’re a strategy. When used deliberately, interest-only periods on deductible debt preserve cash flow and allow you to focus principal repayments where they count most.
- Multiple offset accounts are a powerful tool for investors. Keeping investment and personal funds separated while still reducing interest is cleaner and more tax-effective than mixing everything in one account.
Could This Strategy Work for You?
Every client’s situation is different. Lagos Financial works with 60+ lenders to structure the right solution for your goals. Book a free strategy session to discuss your options.
About the Author
Victor Lagos is a licensed mortgage broker (ACL 546774) and founder of Lagos Financial, with close to 20 years of finance industry experience since beginning his career at Bluestone Mortgages in 2006. A member of the Finance Brokers Association of Australia (FBAA) since 2015 and the Australian Financial Complaints Authority (AFCA — 98399), Victor helps Australians build wealth through tailored home loan and property investment strategies, working with 60+ lenders nationwide. Last reviewed: March 2026.
Victor Lagos
Founder & Mortgage Broker, Lagos Financial
Victor Lagos is a licensed mortgage broker and property investment strategist. As founder of Lagos Financial, he helps Australians build wealth through tailored finance solutions, working with 60+ lenders nationwide. He also hosts the Debt to Financial Freedom podcast.
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