I currently have 2 loans secured by PPOR. A) $250k for investment purposes. Funds currently unused and sitting in an offset account. B) $150k still owing on the purchase of the PPOR. Both loans are marked as Investment loans according to the financial institution and I pay a higher rate of interest accordingly. The reality is loan B should be marked as OO (owner occupier). I'm in the process of topping up loan A by $170k to $420k. I plan to purchase an investment property. It was suggested by the financial institution that I have both of these loans converted to OO as they are secured by PPOR. Would converting loan A to OO affect the tax deductibility of the loan? My guess is that it wouldn't affect deductibility as the purpose of the loan is for investment even though it is registered as a OO loan.