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An 100% offset account does exactly that 100% offsets. So you have a loan of $150k and your offset account has $143k so you're only being charged interest on the $7k difference. The interest charged has nothing to do with the loan being IO or P&I. If your loan was $500k and offset was...

Note the benefit to IO with offset is preserving the funds in the offset account, because at this stage you plan to move into the property and make it your PPOR. But thats in 3-5 years, a lot can and will change in that time. By preserving the funds in the offset you increase your flexibility to...

If you put the same money that you would pay into the offset rather then the pricipal it will end in same result, same interest charged, same tax. But you would have $$ available in offset which could benefit you in the future. Example $300,000 Loan @ 5% P&I over 30 Years = ~$1611 per...

I'm confused on what you're saying here... If you're putting the same money into the loan be it IO and funds into offset or P&I with funds going off the principal the net result should be exactly the same, so you CF/tax etc will be the same. You can only claim tax expense on the interest...

IO - there is no guarantee you will move into that property in 3-5 years times. If you go IO with funds into offset will reduce the interest the same but also preserve the capital which could be at effective at a later stage. IO gives you options, you control the funds. Less issues with the...