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You're miss understanding how interest only works, it's not like your image. In most cases, people have a 30 year loan which is interest only for the first 5 years. Let's assume you don't do anything to the loan after the I/O period and it simply reverts to P&I. First 5 years: You pay the...

An offset account provides a small amount of protection from the bank, as Rolf suggests they they have more control over a loan account than a deposit account (in essence an offset account is just a deposit account with some funky features). An offset account gives you no asset protection...

There are a couple of lenders with exceptions, but with most lenders the repayments reduce to zero. Happy day! :) It means you'll get less tax deductions which might actually mean you have to pay more tax, but you're saving a lot of interest by doing this (which would be worth more than the...