It may still be difficult even at 80% or less if you are a new contractor. It helps if you are in the same industry and the longer the contract the better,
Also if you are contracting you generally have more deductions you can claim so even up with a lower taxable income which doesn't help either.

You won't be able to get a loan while on probation at 95% LVR.

How far you can go will depend on your incomes and rents.
You don't have to take the new loan from the same bank as the LOC.
However you may get a bigger discount by staying with one bank.
You should use an offset account for all incomes and rents and this should be on your PPOR loan. If you odn't have one then on an IP loan. You cannot have an offset on a LOC.
Splitting is not necessary as you should only be using the LOC for deposits and costs for IPs – no personal stuff.

its not a matter of just telling your broker. You need to apply and set up another loan on property A in advance (ideally) of starting the loan for property B

Here is one major reason:

You have 2 properties valued $100,000 each. ie $200,000 in total.
You have 2 loans of $80,000 each.
each loan is secured by both properties (ie crossed)

Things start to go bad in your personal life. You have a heart attack etc etc.

You try to sell property 1. no buyers so you drop the price to $90,000 and quickly find a buyer.
You need to apply to the bank to sell this house as it is used as security for loan 2 as well as loan 1.
So the bank needs to do a valuation of IP 2. It comes in at $90,000

The bank requires the loan to be 80% LVR. 80% of $90,000 = $72,000

So not only have you taken a hit on the reduced sale price of your property, but now you need to pay down the remaining loan by $8,000 or the bank will not release the property.

This happened to a friend of mine in real life – but the figures were much worse. He had to come up with $40,000 cash to pay down the remaining property. He was selling the first one because he had no cash. So this meant he couldn't sell and the bank ended up repossessing both properties and I think he is bankrupt now.

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There is absolutely no reason to cross collateralise 2 or more properties. If the deal can be done with crossing, then it can also be done without crossing.

What the broker is suggesting is cross collateralisation.

I am located in Sydney, but don't take on new clients anymore. I can refer you to someone if you send me your email.

21 Jan email from bankwest:

No BAS Statements Required for Low Doc Home Loan

• Non-LMI Deals (LVR <=60%) require customers to have registered ABN for a minimum of 1 year.  
• LMI deals (LVR 60%-80%) require the ABN registration for a minimum of 2 years;
• Customers' claiming income of >$75k will be required to have their GST registration in place for the same length of time as their ABN (minimum of 1 year for non-LMI deals / 2 years for LMI deals)

A no doc loan is one in which you do not need to prove your income or declare an income.

Loans don't unsecure themselves, unfortunately, you will need to apply to your lender to vary their security. If the loan is less than 80% of the value of the remaining property securing the loan is usually possible.

If you are using the PPOR as security for the commercial you would have to reduce the LOC by this amount. Longer term I would look at getting the commercial property to secure itself.

I  would try to get a LOC on the PPOR.
$700,000 x 80% = $560,000

Less current loans and subject to servicing.

Then buy the new place using a 80% loan and 20% from the LOC. No crossing of securities