What Loan Structure Works Better for Investors — Separate Loans Per Property or Cross-Collateralisation?
Cross-collateralisation ties your properties together in ways that aren’t always obvious. Understanding both structures before you commit helps you make a more informed decision.
Borrowers purchasing multiple properties may structure their loans in different ways, including having separate loans secured against each property or using cross-collateralisation.
With separate loans, each property has its own loan secured only against that property. If one property is sold, the proceeds are typically used to repay that specific loan, while the other loans remain unchanged.
With cross-collateralisation, multiple properties are used as security for one or more combined loans. In some situations this may reduce flexibility if a borrower wishes to sell or refinance one property independently.
Different loan structures may have advantages or disadvantages depending on lender policies and individual circumstances. Loan structures may also have tax implications, and borrowers should seek advice from a registered tax agent or financial adviser before making decisions.
You may wish to speak with a licensed mortgage broker to assess your personal circumstances.
This is general information only and does not constitute financial or tax advice. Loan structure decisions for investment portfolios should be made in consultation with a licensed mortgage broker and tax adviser. All loans are subject to lender approval.
Sources: ATO, Rental Properties 2025; APRA Prudential Practice Guide APG 223; ASIC MoneySmart, Investment Loans; RBA, Financial Stability Review 2024.
