Borrow against house to buy shares

Hi all, I established my share portfolios using ANZ "equity manager loans" held against my house - which (10 years ago) used to have quite low interest rates (if I recall 0.5% above P and I). I stopped using the loans about a year ago when I realised the differential had increased (around 2% now)- and switch into a fixed P and I. This is of course no good for adding to my portfolio in small chunks.

I note ANZ is canning the loans (this arrived today):
We are writing to inform you that, effective from 31 July 2021, the ANZ Equity Manager product is no longer offered for sale. You will still have access to your current ANZ Equity Manager facility and the terms and conditions applying to that facility have not changed.

My question now is - how is it best to best to borrow against the house in (say) $5K chunks to invest in the share market. The only thing I can think of is taking out a P and I loan and dumping the proceeds into a new ($120 per year) offset account. The money in the account is for investment purposes, and only starts creating interest payments when the money is spent. On some blogs they talk about debt recycling schemes which create new $20k loans when you have sufficient equity - seems burdonsome to me. Any other schemes people use (or things wrong with above)?

Thanks.

 

OK, just found the answer for this exact situation in Terry'sTax Tip 1.
Tax Tip 1: Parking borrowed money in an offset account

 

Sounds like a decent idea for what you're trying to do, why is it burdensome?

 

It is no longer for sale but you will still have access to it. Therefore can't you just use that?
Once drawn down you could convert it to a cheaper product with ANZ

 

It might take me several years to draw down and it hurts to pay 4.x %. Idiot for not using in March 2020 (i was a rabbit in headlights, unlike prior crisis)

 

Having to contact bank and explain myself to assessors (why? What are you going to do when you retire? What will the money be used for?)... and spend three hours rearranging my expenses to match ANZs format. Maybe i'm a wuss.

 

Thats why you use a broker, to help assist you with the nitty gritty stuff.

 

I think you missed Terry's point about converting any drawn amount to a cheaper loan.

 

Sound like using the services of a mortgage broker might benificial.