well I've got approx $930k in debt in two existing mortgages over two properties that is 100% offset with cash at present. (zero loan balance). As I've moved town and jobs I now want to buy a new house to live in. I was going to pull out the 930k cash in these loans plus a bit more I've saved up to buy an existing house outright. With the NAB portfolio facility refinanced I can then use the 930k debt and itemise the debt into different sub-accounts so it becomes more transparent for the ATO. eg. sub-account for share trading etc. It's mainly for the sub-accounts that's of interest to me.
Daniel what you've just described can be done with almost any lender by using multiple loans or sub accounts. You won't need to cross-collateralise everything which is a given under the NAB portfolio loan (or CBA umbrella, or ANZ portfolio).
Interesting about the portfolio facility as I am looking at rolling over to it soon. I have two loans plus two LOCs and a M/C with NAB and both the fixed loans are coming up for review. I have another IP with CBA.
Now I know all about the X-coll etc etc in having your property tied up with the one bank - that is why I started branching out with my third.
My reasoning is that it will be easier as all my daily banking, cards, pay accounts etc are with NAB (currently the Choice package).
Also I have no intention to have any more loans in the package and as i go along spread out more with other banks. The portfolio gives me a solid base and eventually I will have the security to break it up.
I have loans of 7.35% and 9.35% about to expire - I will surely be saving money setting up in the Portfolio.