Moving into IP - Refinancing loan to pay for Renovations

Hi all,
Scenario:
I plan to move into my IP but would like to renovate ($50k) beforehand with or without the current tenants. I would like to fund this reno by refinancing another IP.
The idea behind it is to use a deductible loan rather than non-deductible loan or savings.

Question:
**Would the new borrowing be considered "borrowing for an investment purpose' if used for renovating prior to converting to PPOR with it tenanted or advertised for tenancy?

 

The purpose of the funds is to contruct/reno, while that property is rented out the interest should be deductible, but the loan would no long be deductible once you move in. If it is after the tenants leave then the interest won't be deductible.

If you don't split the loan you will end up with a mixed purpose loan as well.

 

Thanks Terry.
Much Appreciated

 

Ditto the depreciation and capital works deductions arising from reno will cease to be deductible.
Scrapping deductions likely to not be available where the former IP is not also rented continually before and after reno's.

 

Thanks Paul.

The goals were: Use deductible debt to pay for capital works rather than own money, but I see that once it becomes a PPOR the deductibility is lost because the purpose is now private.
If the IP remained an IP while the portion/borrowing was slowly paid off to nothing that would entail deductibility but that is not productive.

Please correct me if I'm wrong. Thanks guys.