Extending Current PPOR loan for investing purpose

Ok now you have lost me. Not sure what you mean by reason to keep the main residence loan at $1.2mill. That’s the current balance after a few years of repayments. And the purpose of this process would be to increase that loan so I have access to more credit.

I thought I already had it set up as recycled debt. I think I am doing it right after I consulted with you a few months back @Terry_w .
So I have split the loan into two parts. Probably wasn’t necessary but did it anyway. Part 1 is $800k but the full $800k is paid down. The account remains open with the $800k being able to be drawn out. Each month the minimum repayment is removed from the surplus funds in the account and the loan account slowly shrinks.

This is recycled debt right? So I can draw it for investment and interest is deductible?

Now the other part being $400k is offset with $400k in the offset account. If I’m understanding this correctly I can take the $400k from the offset and put it straight in the loan account to technically $0 that loan. Then withdraw it back out and invest it. Recycled and now deductible.

Is the above correct or have I missed the mark.

So all i am trying to do from here is increase the same loan so I have access to more debt for investment purpose and hopefully get a better rate at the same time.
And additionally if possible and not to painful take out a loan against a fully owned investment property for additional access to low rate debt also for investing. This should take me from my current position of having access to $1.2mill of cheap recycled deductible debt to having access to $2mill of cheap deductible debt.

 

Mostly right.

The debt recycling doesn't begin until you have used the money. The interest will only be deductible if the redrawn money is used to invest in income producing assets.

You won't be increasing the same loan (2nd last paragraph) but borrowing new funds, under a new loan, using the same security - or the investment property

 

Perfect. Thank you @Terry_w . I will say this again. You are such a lawyer. You break down your explanations very thoroughly and precisely. No mincing of words what so ever.
Can’t leave even the finest of details out of any questions put to you. You will pick it up and point it out.

Considering all the points raised I am not sure if there is any value in this for you @Terry_w as a broker to take on. If you think there is I would be happy to reach out and discuss options further.