Thanks for your advice guys, that’s reassuring.

Fortunately my mortgage broker is a personal friend, so he didn’t have any issues with handing the valuation over to me. However I’ve heard most mortgage brokers will also do the same.

My main concern really was that if I were to get a valuation done in the current market, I would hate for it to…[Read more]

Terryw wrote:
Few comments:If you borrow extra and leave it in redraw it will be treated as a new loan once money is withdrawn from the redraw. Deductibility will depend on how the funds are used. If you take money for rates etc then it would generally be deductible. But if you transfer the money from redraw to an offset account to write a…[Read more]

luke86 wrote:
One way of doing it is to argue that the reason you are doing it is to be able to hold on to the properties, and not to save tax. It might be prudent to get a private ruling on it to be sure.Cheers,Luke

That's my thinking. I don't plan to start paying all outgoings from redraw but, should cash flow ever get tight, I imagine the…[Read more]

So am I able to use the redraw facility to pay for outgoings other than interest on the IP without the ATO kicking up a fuss?Has anyone else borrowed extra on a refinance for a similar purpose?

Jamie M wrote:
Use an "offset" instead of a redraw and you won't have any tax deductibility issues.

If I were to put the 'extra' funds from the higher loan amounts into an offset account then I would definitely have tax deductibility issues as I would be mixing with the personal funds already in my offset account.

I should have mentioned that my PPOR is already linked to an offset account and will remain so with the new lender.Both loans are currently IO and will remain this way with the new lender.Loans are not cross collateralised.