Hey All! I have had a great time reading your forums for the last few months and I finally got around to signing up! I am really excited to join the SS club A little about me... I am 20-something just finishing up my undergrad studies which is very exciting! On an impulse of sorts with only 22k notice of assessment I managed to buy IP1 earlier in this financial year (YEAH). With graduation looming and a job where I can get full time hours straight away my borrowing power is about to significantly increase! I have always loved realestate but I am planning on being far more strategic with my money and purchases in the future! I have the art of living on the smell of an oil rag down to an art form and look forward to throwing all of my disposable income at realestate for the foreseeable future! I admit I am pretty excited to see what I can do with a 'real' (read: full time) income! For my future/hypothetical IP2 I have a 10% dep and 5% closing costs and the other 10% will be secured against mothers property. Future hypothetical for loan structuring purposes? IP1 Loan: 4.84% (fixed: NO OFFSET: YES REDRAW) IP2 Loan: Lesser rate! Obviously I will be wanting to put the funds into IP1 for the short term as it has a higher interest rate. Am I able to move these surplus funds from IP1 loan into IP2 loan without affecting the deductibility of the interest on IP1 loan? Both will be remaining IP?s but I am not sure if the moving of this money is an appropriate ?investment purpose?. I would like to save interest on IP1 given the higher interest rate but may in the future need to pay down debt on IP2 to release guarantor. If this is okay that would be ideal.... If it will bugger me up tax wise obviously I will not bother and just suck it up and pay disposable income into IP2 loan! Any thoughts would be greatly appreciated!