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The market is a very, very different place to 2006. Since then we've seen a GFC, boom, correction, lenders rise and lenders fall. I wish we still had the lending conditions of 2006 but we don't and never will again. There's a few lenders who will lend below 40sqm if the LVR is 80% or lower...

I doubt you'll win the argument. They've got their opinion and they've got the money. :( You could offer up your PPOR as security. It looks like your PPOR loan is at about 80% (ignoring the money in the offset) you'd have to reduce your loan on the PPOR to accommodate this. It could get...