Hi All! I have been advised by my financial planner that I should refinance my current PPOR P&I loan (150K debt with 80K redraw available) to a Line of Credit type loan(Interest only). He purports that we cannot legally draw out all available redraw when it comes time to convert our PPOR into an IP (say in 2 years time) in order that we get maximum tax benefits. ie. If we have 150K debt and 80K redraw, just before we convert to IP, we are no legally allowed to transfer out the 80K and make the debt 230K. Then, claim tax deduction on interest for the full 230K. Hence, he proposes that we refinance & restructure our current 150K debt now (without being able to legally draw on the 80K redraw). Even if this is true, I don't see how a LOC loan structure will solve the issue, isn't it exactly the same as a redraw? Is there any reason why I can't just use my existing loan as an investment loan later on down the track, redrawing all available redraw and maximizing tax deductibility? Though I realise that P&I is not necessarily ideal for an investment. I need a second opinion to make sure that i'm not just being shoved another sale! Please help!