I am looking to utilise capital from my PPOR home loan to purchase an investment property and could use a bit of advice. My home loan is 420k and is split into 2 portions (Acc1: 300k + Acc2: 120k). Both of them are on interest only with ability to redraw the funds. I have fully repaid the Acc2 and have $0 interest on the account at the moment. I am planning to utilise the $120k funds from Acc2 to pay for the deposit and costs to purchase an investment property. I will than take a separate investment loan from a different bank for the IP. Is this structure acceptable? Would I be able to claim tax deduction on interest charged on my Acc2 once I use them to pay deposit to purchase my investment property? Thanks in advanced for your feedback.