Search results

LMI is a one off payment. If you're happy with that amount and aren't going to go spending the extra you've borrowed then I agree you may as well borrow more and keep the balance in an offset until you need it for the next investment... but that is just what I have done.

Rob are you referring to the extra purchase here or the re-fi? The first I can understand but the second makes no difference as your net debt you pay interest on is still the same (IO with offset) - it is only your access to cash that improves.

A golden rule is to never run out of money! Maximise your access to credit at all times - you never know when you may need it. It's when you really need it that it's the hardest to get! With IO loans and an offset it doesn't matter anyway - you are still paying the same amount in interest...