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Splugey, that is my point. In doing so, you are potentially painting yourself into a corner whereby if you do decide to change your PPR into an IP, you are either faced the situation of having to sell or not getting any tax deductibility on the loan. Obviously there is the opportunity cost...

If you have $600k of equity, why not do an equity release? Why pay down the loan to take it out. Unless of course you are referring to the fact you have a $600k loan with $600k in the offset and there is no available equity to release.

Never say never :) Anything is possible. Question is how much do you want to paint yourself into a corner.

Thanks for clarifying it Terry! :)

I was thinking the same. But then he wouldn't be able to do his debt recycling and increase his deductible debt... unless he obtains a LOC (assuming the PPR increases in value). Would this not be the case?

My question for you is what happens if you decide that one day you want to move into a bigger house and make your current PPR into an IP?