Thanks all for the replys.

Sounds like no-one can decide whether or not capitalising is deductible.

Personally, I do not see why you would even want to do this as the tax benefit is far less than paying the debt down!!!

I was thinking of doing this to take a year off work and travel and/or spend more time finding good investments.

I’m…[Read more]

I think I just understood what Mortgage Advisor is saying –

Original Property owing $80k
Worth $120k
Equity is $40k
BUT, you must keep 80% LVR on this property.

Therefore 120*20% = 24k of equity you must keep in this property. So of you’re $40k equity, you can only use 40k – 24k = 16k

If you want to skip LMI on your next property, then using…[Read more]