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Have you had advice on this? Dangerous territory.

ATO put out a ruling earlier this year saying that the can apply part IVA to schemes involving the capitalising of interest. Seems like your dominant purpose is to increase your tax deductions and pay your home loan off sooner so the ATO could deny you a deduction in part or full. See my...

This is still borrowing to pay interest and you will be mixing investment debt with private debt. Not good. Where is your offset account in all this? I think you need to rethink things if possible. Ideally I would want to see a IO loan with an offset in place of A with maybe a separate...

Above you said you borrowed to pay these fees but it came out ("were charged to") of loan A??? If it hasn't happened then I suggest the fees relating to the investments come out of the investment LOC B.

Hope you won't use this argument with the ATO!

Yes, that is true - must pay the interest each month, but this can be from another account or a LOC. Gero, which lender(s)?

My answers are above. With a LOC interest is charged to the account. If you don't pay it then that is capitalising interest. Same as if you borrow to pay it. Therefore make sure you get proper advice especially in relation to the capitalising of interest as what if your reason for doing...

In general terms - broker, real estate agent, tax agent?

The structure doesn't appear to be that bad. Try and get them to put things in writing about tax deductibility etc so that you can sue them later when things go wrong.:D Where does all your wages and rents go? Is there any chance that the main residence could become rented? I am a bit...