Hi guys, I have $1M cash in the bank which I am using to offset $1M of IP loans - effectively paying zero interest. We are building a new house(PPOR knockover\rebuild) which is going to cost us $1M after landscaping, new furniture, etc. My wife and I are in a bit of a pickle. She wants to use $500K cash and borrow $500K from the bank. I want to borrow the whole amount ($1M), as then we can fully offset the new home loan and pay zero interest on it, and then claim expenses on the $1M worth of IP loans, which is a more tax effective approach. Any advantages to sacrificing $500K cash? I'm struggling to see the point. Thoughts?