Hi All, This is my first post. I have been lurking for a few weeks and have learnt so much. My compliments to everyone who posts for sharing their time and knowledge. I recently finished reading Jan Sommers book and was left with the wonderful feeling that I am actually far better off than I ever though. Having read the posts here concerning living off equity, I am even beginning to wonder if I really need to return to work again! Until a few weeks ago I never even knew about LOC loans which has been a great discovery because although I have a PPOR worth around 850k fully paid off, I have a relatively small income from interest on savings and Family Tax benefits. I would be very grateful if somebody could address a couple of questions that I have concerning LOC loans. Firstly is the serviceability criteria for obtaining a LOC the same as for a normal home loan? I am concerned that I may be unable to obtain one because of a lack of income. Secondly, why is it that most people talk about using their LOC to fund only the deposit on a new IP and then obtain another loan for funding the other 80-90% of the purchase? Why not simply use the LOC for 100% of the purchase price. Is it simply a case of being able to find a better interest rate with the normal mortgage?