I need to obtain a PPOR while retaining my investments. Nice if I can do it eh? I could put down $150k as a deposit which is free from any encumbrance. So far so good. Then I would get a loan for another 200k; so total value of PPOR would be $350k. Once my loan is in place I would wish to borrow against the equity of $150k. Say I could borrow 80% - $120k. I could then margin lend into a income fund such as Navra; and use the income to hopefully pay the home loan of $200k balance. My question is how much debt recycling is TOO much? Perhaps a strategy would be to have amount in offset as backup? PS - I could struggle to pay the entire house payment on 200k if the scheme fell over. Any thoughts / adjustments/suggestions welcome?