Hi SS Gurus, I seek your suggestions on how to structure the mortgage/mortgages on my situation for the best finance and tax outcome. Actual scenario: PPOR - unit with value around 275K , paid in full , no mortgages bought an off the plan apartment for 540k (deposit 54k) , I plan to live on this Apto and by the time of settlement (2016) this I will be able to pay an extra 150k cash. That leaves an outstanding balance of around 336k. What to do next? Would it be possible to create 2 mortages, Mortgage A = 80% LVR on the unit for 220k (interest only) Mortgage B = 116k on the new apartment (interest + principal) to be paid very quickly ~2years Any suggestions? In this scenario would Mortgage A be tax deductible as it was my original PPOR?