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Hi Little Buddy Depending on the original lvr it may not be worth looking to refinance due to the potential lmi costs which maybe incurred again. If your current lender offers a 100% offset account with an interest only loan you maybe best to merely stay put and switch the type of loan...

An offset account is a totally separate savings account which is linked to appropriate mortgage account whilst a redraw account is normally a feature of the loan where extra payments are paid directly into the loan and can then be withdrawn.

Adam Almost there. In an offset account you dont actually receive any interest so have nothing to declare. The interest you would have been paid is deducted from the interest you are charged on the corresponding linked home loan.

Hi Adam Whilst Yes IO will aid your cash flow it gives you flexibility and that is also important. Normally you would try and set up an interest only loan with 100% offset account. Remember what starts off as your PPOR may end up being a investment property and the last thing you want is...