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Agree with Corey - IO on a PPOR is likely to have a negative impact on future borrowing capacity with most lenders under the current lending environment. However - it shouldn't be a massive difference and if the PPOR is going to be converted into an IP at some point then I'd IO is still...

Sure is. Redrawing money from a PPOR loan that's going to become an IP causes a big mess. Placing surplus funds into the offset is the answer. Cheers Jamie

Hiya Glad you found the info useful :-) The issue with "redrawing" money is that the purpose determines deductibility. So if you redraw the money from your loan - what are you going to use those funds for? I assume for your next PPOR - therefore the purpose isn't investment related...

Hiya If the loans are IO then the repayments will generally be monthly.....if you could choose, it wouldn't make any difference anyway as interest is calculated daily. Cheers Jamie

Hiya No worries - glad you find the info useful. I'd be converting your current loans to IO now - set up an offset against one of them and park all your savings in it. When it comes time to buy your next PPOR - use the funds from the offset to cover the deposit/costs. If you need to...

Yep - could be interesting times ahead. I'm not too worried at the moment - but will keep a close eye on how things unfold. Also submitting quite a few IO + offsets this week too so hopefully it's all smooth sailing. Cheers Jamie

No worries. Albanga summed it up. If you've got a PPOR loan -then have the offset linked to it. If you don't have a PPOR loan - then link up an offset to the IP loan. Cheers Jamie

A common question that I'm asked and which frequently comes up on the forum is whether a borrower should opt for principal and interest or interest only repayments against their Principle Place of Residency (PPOR). For that reason - I thought I'd provide a rundown on the topic. I see it...