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Lending for IO against PPOR's is tightening - but certainly not impossible. Your broker will just need to explain the rationale behind the structure - ie it could become an IP at some point down the track so client would like to preserve the principal balance and will make extra repayments...

In that case - definitely best to set it up as IO and avoid paying down any of the principal. The rationale is that the loan will become deductible when it becomes an IP - so best to preserve the loan balance, especially if you end up purchasing another PPOR. Also look into the lenders...

Hi Aussieb Looking beyond the rate factor - what are your future plans with this property? Will you be looking to extract equity in the future? Cheers Jamie