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Yes that is generally correctly . The advantage of an IO with an offset is outlined above 1. lower repayments 2. building a buffer to use 3. with the same interest outcome.

That wouldn't really change much. But something like this could. $100,000 purchase, $80,000 loan PI. Bubble bursts after 1 year and the property is now worth $70k. Lose job just as tenants vacate. Loan is now $78,000 and you have no cash to pay the loan. You miss 2 repayments and get a...

Its always good to pay down debt. But it can be better to use the IO with offset strategy, if you are disciplined, for a few reasons such as: 1. Saves the same amount of interest 2. Keeps cash available for private expenses, and makes the interest on these private expenses deductible. 3...