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If you plan on turning it into an IP then you could be costing yourself a heck of a lot of money down the track. IO has a lot of other benefits as well but most importantly greater opportunity. The money is yours in an offset, you don't need to ask the bank for it. I always think to the GFC...

OH DEAR! Do yourself a favor and get a new broker ASAP. As Terry said, down the track this could cost you a substantial amount of money each year. And personally to me the concept of building equity is not paying down a loan (yes in theory it is) but real equity comes in the form of sweat...

Great post Paul! One thing you forgot to mention though is that whilst the traditionalist pays down debt fast they leverage to the teeth to buy excessive amounts of concrete and cement lions.

Great post Jamie! Another benefit I see in having your cash in an offset is what happens if there is an American style GFC market crash in Australia. If you have a 500k loan paid down in principal to 100k and then values plummet and your property is now valued at 100k then your at 100% LVR...