if you have to play silly games to get a loan, you are getting one you can't afford.
Encouraging a couple in their sixties to do this is irresponsible.
Thanks so much for your helpful response. If you had read my earlier post, you would have seen that they are not, in actual fact, getting another loan. What they wish to do is to consolidate all of their loans with the one bank to make it easier to keep track.
FYI, not that I need to give this info, but the rental they earn is nearly $100K, and the loan repayments are around $55K.
But if they did decide that they wanted to borrow some extra money so that they could use it to live off, and I had to play 'silly games' as you so condescendingly point out, I would absolutely encourage them to do so. My worst case scenario as their kid as that the LVR on any properties I inherit will still be way less than 80%.
And before you start suggesting they sell the properties, don't bother. They are holding as many as they want in order to give 1 each to their kids.