My case is current PPOR (to be IP) Market value: 495k Loan outstanding: 260k (IO for 10years), the lender does not do LOC now, buying a property to move in, as PPOR purchase price: 700k cash 200k After I read Terry's post, still I have not got a fully understanding on how-to. please help me out. 1. Do I need refinance? My current lender does not do LOC, do I have to refinance it ? or I can just apply a LOC from some lender else to clear or offset my current loan? 2. The loan for the new purchase must be with the LOC lender? If this is the case, i will borrow 495k*0.8+700k*0.8=956k,it is over my borrow capacity which is around 600k. how can LOC work? 3. A private sale (through solicitors without real estate agent), will be accepted? My understanding is, in this way I can use the equity to offset my new purchase and increase my taxable deduction on the IP. it doesn't matter if i use cash to buy PPOR or not (unlike the case in Terry's post), correct me if it was wrong, please. very much appreciated!