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Thanks everyone. Very helpful. The other thing I'm thinking about is when to setup LOC. I'll probably need the LOC funds mid next year. However, there have been recently good sales in my suburb (Sydney south west) and I think now would be a good time to setup LOC as valuation may be...

Thanks Rixter! Can I increase LOC amount in say several years if I get more equity in my PPOR? Does variable/fixed rate has any impact on this?

My current PPOR loan is variable IO and I was considering fixing the rate. Is it possible to have it structured as fixed IO and still setup LOC the moment I fix it?

Makes sense Redom. Just wasn't sure of how banks treat LOC debts.

Cool. That's just what I though. Just wanted to double check. In terms of the above sample numbers guys. In general, will the bank be able to lend me $450000 (as $500000 - $50000 LOC)? Is it going to be lower than $450000?

:D Well, I suppose most guys here set things up right from the beginning .

Thanks guys for quick responses! I've got plenty to think about. Quick clarification regarding the equity access and borrowing capacity. Say I go ahead and setup separate loan/LOC and don't use the funds until I find an IP. Does setting it up decrease my borrowing capacity? E.g. say the...

Hello all, I've been thinking about the differences between the loan Top Up and Line Of Credit to access equity from my PPOR. The idea is to further invest it in IP. Am I right assuming that topping up my PPOR loan and investing the money in IP will cause problems with tax management? If...