Why Loan Structure Matters More Than Ever in 2025

In today’s lending environment, getting a great interest rate is only part of the equation. With tighter borrowing rules and changing financial goals, your loan structure can have a significant impact on your cash flow, tax outcomes, borrowing power, and future investment opportunities.

At Simplify Finance, we are seeing more clients shift their focus from just finding the “cheapest rate” to building the right structure that supports long-term growth.

Key factors we help clients consider include:

  • Offset vs redraw: Understanding how to keep your funds accessible while reducing interest.
  • Interest-only vs principal and interest: When is it worth using interest-only repayments to manage cash flow or support a property investment strategy?
  • Loan splitting: How splitting a loan across multiple products or lenders can provide more control, flexibility, and risk management.
  • Cross-collateralisation: Why we often recommend avoiding it to keep your portfolio nimble and scalable.
  • Using trusts or company structures: Particularly for investors or self-employed clients, these can offer asset protection and tax efficiency — but require careful planning with your accountant.

These are not one-size-fits-all decisions. The right structure depends on your income, goals, property plans, and personal risk appetite.

Why This Matters Now

With borrowing power down for many Australians and property prices rebounding in key markets, it is more important than ever to build a strategic finance plan that works today and tomorrow.

Our clients are often surprised at how a few smart structuring decisions can:

  • Increase their borrowing capacity
  • Improve cash flow
  • Create opportunities for future investments
  • Save money at tax time (in collaboration with their accountant)

Let Us Help You Build the Right Loan Strategy

At Simplify Finance, we go beyond the rate. We work with you — and your professional advisers — to build a smart, scalable loan structure that suits your life and your long-term goals.

✅ Book a free 30-minute strategy session with our team to explore your options
✅ Get tailored advice whether you are buying, refinancing, or investing
✅ Understand how your structure affects your future borrowing and tax planning

👉 Book your strategy session now or contact us to get started.