I would appreciate some advice with my refinance. The purpose of the refinance was to release equity from my PPOR for an investment property. I have a bad feeling that the wrong accounts were used to during settlement which would lead to issues to with tax deductibility. I am waiting to hear back from my broker but would love to hear your suggestions to fix the situation. I am refincing from: Loan 1 (Bank A) - P&I - $25,000 (PPOR) into: Loan 2 (Bank B) - LOC - $50,000, Purpose: Personal Loan 3 (Bank B) - IO - $450,000 (with offset), Purpose: Investment I was expecting the following to happen during settlement. Loan 1 - paid off Loan 2 - Balance = $25,000 (50,000 - 25,000) Loan 3 - $450,000, Offset: $0 However, the following has happened: Loan 1 - paid off Loan 2 - Balance = $50,000 Loan 3 - $450,000, Offset: $425,000 From what I can tell, Loan 3 was used to pay Loan 1 with the remainder deposited in the offset attached to Loan 3. Does this mean that Loan 3 is now considered mixed-used and is will have tax implications? What can I do to rectify the situation? I am also concerned with funds being deposited into the offset of Loan 3 instead of the loan itself. What happens if I transfer additional savings into the offset?