Use home equity to build your property portfolio

I have just helped a couple and 2 children purchase their new home in Sydney’s south western suburbs. They only needed to borrow $300,000 to finalise the purchase. However we have given them a loan to 80% or $475,000 so that they can use the extra funds to buy a future investment property. They are ready to go! What did we do with the extra $175,000? We placed the funds in a 100% mortgage offset account where they don’t pay any interest until they use the funds. This is a much cheaper and faster way of borrowing if you want to immediately get into the property market.