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You've got to ask yourself what's going to deliver to you better savings? 0.1% reduction in interest rate or cashflow savings and convinience with a better offset account? There are also other products with comparible interest rates and offset accounts; alternatives that may be worth...

Agreed, LOCs are generally more expensive than regular loans and don't add any benifit over a properly structured regular loan. The offset saves you about 7% interest, it's not taxable. A savings account earns you about 5% interest which is taxable, effectively meaning youo'll earn about 3-4%...

Interest only is still available with fixed loans. Most lenders don't allow offset accounts and extra repayments are very limited. In this case you usually just pay the interest every month and the outstanding principal remains the same. After the fixed period the loan usually becomes...

The bank will give you a 30 year loan. The first 5 years might be interest only. After those 5 years, the loan will automatically revert to principal and interest with a repayment schedule over the final 25 years. In 30 years you won't owe the bank anything. Most people make adjustments to...

If the loan is for investment purposes, you should be able to deduct any associated account keeping fees, but this is a question for your accountant. Offset accounts only offset the loan. They don't pay you interest. Keep in mind the interest on a home loan is usually higher than the...

A P&I loan does create equity, but really slowly and effectively only at the rate at which you save the money. I/O tends to be more effective for investors with a reasonable savings discipline for the following reasons: 1. It maintains the highest possible tax deductions. 2. Allows you...