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Perhaps I'll have to check with my broker if I meet other banks' criteria. Thanks for your suggestion, Rolf!

That's because this is the bank (maybe the only one) who will lend me up to 95% loan for an IP with the cash I have and my financial situation, according to my current broker. My first broker (from Aussie) told me because it's an IP, I can only lend up to 90% and even I suggested Bankwest to him...

The one I'm looking to go with is Bankwest's Super Start Home Loan, only 6.9% interest and with other great deals. But because this package provides some benefits, it cost some maintenance fee for its offset account.

Thank you for helping me to understand, Peter. I was still confused in the beginning because my broker said the offset account doesnt reduce the month to month minimum repayment, but now he said the interest charged on the loan is calculated on daily basis. In that case, it does make sense of...

Thanks for the links. Thanks for explaining in more detail, Peter. It does make sense why I can see the banks have 5 years interest only loan. It's only really effective if I dont pay a single cent to the repayment, otherwise it's better off PI loan, looks like I'll have to try really hard...

Thanks, Monopoly, I think I can see the point now.. Thanks for your advice, Peter. Let's say that's a 30 years loan and it's a $200k loan, they can only charge interest against $200k over a certain period of time only isnt it the case? I'm not convinced the bank can charge us forever...

another question. IO provides the maximum tax deduction compared to PI, but what happen when all the interest has been paid and just left with its principle?

Thanks, Peter. But if the offset account requires a $15 maintenance fee each month, will this fee be tax deductible? Is there any offset account out there that provides interest while I can use it to offset against the loan at the same time? If I put all my money into my offset account...

Hi everyone, I'm hoping to get my 2nd IP soon after my 1st IP if possible. I've read Jan Somer's book and she prefered IO loan and according to her, I can still build equity and use this equity to buy the 2nd IP. However when I spoke to my broker he said the only way to build equity is to use...