Loan structure with AMP and debt recycling

Hi

I am planning to refinance and seriously considering AMP as I plan to implement debt recycling. I would like to get your views if the below loan structure seems ok or anything missing to consider.

Current Loans
Loan A : PPOR 210k (P+I). House valuation 550k
Loan B : Investment loan for shares 80k (IO secured by PPOR)
Loan C: Investment property loan 335k (IO)

Refinance loans with AMP
Loan A: Convert current PPOR to Investment loan 210k (IO fixed)
Loan B : Investment loan for shares 80k (IO fixed)
Loan C: Investment property loan 335k (IO fixed)

New borrowing limit from AMP for buying another property to live is 690k and offering IO for equity release of 150k and 540k P+I.
Considering to split the new loans in the below manner.
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Split the Equity release into 3 loans of 50k each as it's interest only so I can maintain maximum tax deductiblitity when implementing debt recycling.
Loan D 50k IO with offset. After implementing DR on this loan,I will request the bank to move the offset to next loan E and eventually loan F.)
Loan E 50k
Loan F 50k
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The 540 k P+ I , want to split in the below manner
Loan G 50k with offset (Once fully implementing DR on the above loans, fill offset with 50k, implement DR and move the offset to Loan H and eventually loan J)
Loan H 50k
Loan I 50k
Loan J 50k
Loan K 340k with offset (salary, dividends, rental income, any other income goes here)
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The only downside I see with the above structure is too many loans and if I refinance with another lender in future, need to pay the discharge fee ($300 for each loan split).
Does the above structure seems reasonably ok ? I will speak to accountant as well to see any tax issues.
Appreciate your inputs and thanks in advance...

 

Mast limit has up to 10 splits. One of which must be a loc. You only need master limit on the main residence security.

Discharge fee relates to mortgages not loans

 

Thanks Terry.. I keenly follow your tax tips which is wealth of information.I will check with AMP again on the LOC with 10k limit. Thank you for clarifying about the discharge fee.

Do you see any issues with the loan structure. ?

 

Why so many offset accounts, and why do you want to keep moving them after you do a DR?
Assuming all your splits have the same interest rate, it won't matter which account is being offset.

Am I understanding right that Loan K is your PPOR? Just use that offset account.

Make sure you fully understand Terry's Tax Tip #1 (if it is what I think you're doing with the offset account):
Tax Tip 1: Parking borrowed money in an offset account

 

I will be getting new loan of 690 ( 150k equity from existing properties + 540 new loan ) and this be used for ONE property. All non deductible as it will be property we plan to live.
How do I structure this with ML ?
Tried to watch some videos about ML but still not getting an idea on how to implement it after settlement.

 

The idea was not to mix personal money in the offsets, so thought of having 2 more offsets purely to redraw the money from loans and then to trading account without any detours.

 

Amp allow transfers directly from the loan account

 

I will.. thank you. Before approaching someone, I would like to get some understanding on how this ML works.

If I can do the splits after settlement, essentially I can implement the structure as below

Total master limit 690k
Loan D : 150k IO
Loan E : 530K P+I + offset
LOC : 10K

I decide I want to buy 50k of shares, reduce LOAN D by 50k by paying the money from offset into it, fill a form and create LOAN F = 50K to buy shares which reduced LOAN D to 100k.

I then get paid my dividends and everything else I receive into my offset account and say I have another 50k.

I now reduce LOAN D by 50k by paying the money from offset into it, fill a form for new split LOAN G 50k and buy shares. Once the above completed, loans should look as below :

Loan D : 50k IO
Loan E : 530K P+I + offset
LOC : 10K
Loan F : 50k IO
Loan G : 50k IO

Repeat the above and do the splits as I wish.
Hope I got it correct this time..

 

Thanks Rolf for the great inputs. I have 80k in offset. (50k for immediate debt recycling and 30k for emergencies.)

With the idea you provided and considering the 50k I have for immediate debt recycling, will the below structure seems ok ?

Total master limit 690k
Loan D : 100k IO
Loan E : 530K P+I + offset
LOC : 10K IO
Loan F : 50k IO

Use Loan F all up, meanwhile saved 20 k in the offset to recycle, pay the 20 k into the 530, lower the limit of the 530 to 510, increase the limit on the Loan F 50 to 70, redraw the 20 from the 70.
Rinse and repeat

 

Planning to buy property of 690k.
150k contribution is from equity release of existing properties.
540k is new loan.
So all the money will be used to buy one property.
I am not sure what you mean by fully available ?
Investment strategy : to invest in ETFs with capital growth