Here's my dilemma- thought i'd write it in dot point form to make it more clearer. Currently building a PPOR. Estimated cost to build $300K ish cash in bank sitting in offset account against IP $310K. Interest on loan is 0% (Ip loan $282K) unused LOC of $240K (unfortunately cannot setup an offset account against this) Dilemma- Can fund the build with all cash but will have $0 in the bank. IP loan back to 100% and no buffer for emergency. Use LOC and some cash but cannot claim interest on LOC as this will be a PPOR. But will have plenty cash available for emergency. I'll be creating non deductible debt. If it was possible to setup an offset account against the LOC this would have been an easy fix. Any ideas??