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In that case the interest on this $14,000 may be deductible (depending how you did it all). So you should segregate this loan from other non-deductible debt, normally. But in your case all the loan interest would be deductible (assming no other redraws have been made) so no real reason to create...

Redrawing money from a loan is consider new borrowings. So the interest would only be deductible if that money is used for investment related purposes. If your loan is, for example, currently $40,000 with $30,000 available in redraw with a property value of $100,000 then I would suggest...