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I forget the details, but you couldn't use a LOC and buy some shares and then sell the shares and apply the money to your PPOR loan while keeping on claiming the interest. There are only limited circumstances where interest can be claimed once the thing it was borrowed for is gone - I think one...

Sounds like a scheme with a dominant purpose of a tax benefit to me. You would also have a problem claiming the tax on the LOC anyway because the return from the ivnestment is not being used to pay down the loan. So at the end of the period you would have no annuity but a large loan still.