Terry / Richard,

Thanks for your help. I spoke to Shakuri Barbari from Property Tax Specialists (recommended on this forum) and another accountant who both echo your sentiments.

We are in a fortunate position in that we have enough for a 20% deposit up front. However, I think I definately need to consider holding on to some of it through a 95% interest only loan.

We are waiting on formal approval on the BankWest, Rate Tracker Ultra Home Loan where we have been advised to take advantage for the first 3 years, before moving on to another without paying any early exit fees. 

I think I have my answer.

Terry, where are you based in Sydney?

Will let you know how I get on.

Regards,

Craig