Overview

We first helped this couple – one in tech, one in law – purchase their home in Sydney, NSW. Less than a year later, they came back to explore an investment purchase.

The goal: refinance their current home loan, release equity, and structure the new lending so they kept additional borrowing capacity and cash for a potential secondary investment down the track.

The Challenge

They had $140k in cash savings and wanted to use it strategically to maximise tax efficiency, improve borrowing capacity, and keep repayments competitive.

They also needed the new investment structured without over-leveraging, and preferred to maintain LVRs at 70% for sharper interest rates.

The Approach

We analysed their full income profile:

• Borrower 1: Base salary: $153,500 (Atlassian) No RSU’s to consider
• Borrower 2: Base salary: $145,000

We:

• Used a debt recycling strategy, applying the $140k savings to reduce owner-occupied debt, then redrawing it as tax-deductible investment debt.
• Refinanced the Sydney home and released $250k equity for the investment purchase.
• Kept LVRs at 70% across both properties to secure competitive rates.
• Structured the owner-occupied loan on principal & interest and the investment loans on interest-only, to pay down non-deductible debt first.
• Preserved additional borrowing capacity and a cash buffer for a potential future property.
• Introduced clients to a specialist buyers advocate to ensure best in class purchasing.

Loan Structure:

• Sydney (OO): $950k P&I at 70% LVR
• Sydney (INV split): $250k IO at 70% LVR