Thank you for your response.

Jamie :When you originally accessed equity, did you set up a second loan or did you simply extend the original loan to a higher limit?

Not a new loan, we extended the loan to 80%LVR on the old PPOR. Then we did a transfer to the new loan on the new PPOR via the offset account, effectively reducing the loan on the new PPOR.

Terrw: Ideally you would have used a 100% offset account and IO loan when purchasing the old PPOR and this would have saved you thousands in tax when you purchased the new one.

I do not understand how this would have saved me thousands. Sorry, please explain, bit of a novice.

Terryw: To fix/improve things now you could sell the old PPOR or if jointly owned sell/buy the other half and borrow to do so. CGT may be minimal but stamp duty could apply.

Can we sell to each other? Eating the transfer duty and loan fees, which would be deducible…right???

Many thanks