You must also expect to pay brokerage for such a deal as the broker will make no money from the lender.

If you consolidate then you will be joining both loans together. You can also get a separate amount of credit available, this is best done as a separate split.
 

TD51
Capital Gains: What factors are taken into account in determining whether or not a dwelling is a taxpayer's sole or principal residence?
http://law.ato.gov.au/atolaw/view.htm?locid=cgd/td51/nat/ato

This document has now been withdrawn.

But you can still view it here
http://law.ato.gov.au/atolaw/view.htm?docid=CGD/TD51/NAT/ATO/00001&PiT=19920326000001

you will gets some idea

Wow

Firstly, trusts won't help you are all with family law type asset protection – usually. This was found out by one of Australia's leading trust experts a few years, a barrister called Dr Spry.

A bare trust is one where the trustee has no powers. A just holds the legal title for B.

Your situation is messy and you need legal advice. Simplest would be just to leave as is and open a new account and deposit the cheque in that or get the cheque made out to your mum.

You also need to look at the trust deed and see if someone else is able to hold trust assets.

Also, I hope you mum is not going to be getting the pension anytime soon as all this will affect that.

Sorry I should have wrote "shouldn't" !
ie should not be a problem

There is more to it than just changing your IDs too.

There is a case in Vic, relating to the FHOG, where someone did that and didn't actually live there. This was proven as the electricity usage showed virtually no use during the period it was allegedly the main residence.

How do they take 28% of the principle and divert it to the shares? Possibly by making you pay extra or having the loan as interest only.

If they could do it you could do it.

Yes, probably correct (without knowing all your details).

73% of the combined loan as this relates to property A. The other 37% relates to property B.

So if you move into property B then only 73% of loan 1 would be deductible and this would be against property A.
Since you would be living in property B, the PPOR, none of loan 2, the 37% part, would be deductible.

But if you moved out and rented both then the whole loan would be deductible with 27% being attributed to property B.

That is a question that only you can answer. There are not just tax issues but lifestyle etc.

If property B was rented then loan 2 would be deductible too because it relates to this property. If you move in and out again you may still be able to claim the main residence CGT exemption.

I think it is best to not pay off loans. Imagine if you paid off the loan and then moved out again buying a new PPOR. You would have no or little deductions on that property while having a high nondeductible loan on the new PPOR.

Try an IO loan with a 100% offset to keep your cash in. You could end up paying no interest while you are living and then then when you move out move your money from the offset or keep it there depending on your situation.