Have you thought of approaching your accountant and discussing a section 15/15? This will aid with serviceability and is accepatable to some Bank lenders. The section 15/15 allows a monthly return from the ATO on your annual interest claim (negative gearing), hence improving your monthly position substantially.

Regards,

Kurt

I would have thought that an offset account is only really useful to reduce owner occupied debt (non-deductible). If you were negative gearing I would imagine that you would attempt to pay interest only for maximum benefit and apply an offset to only the non-deductible debt.

Regards,

Kurt