Great advice in this thread – thanks everyone who's taken time to respond. Learned more in 24 hours than ever before in my life!

Terry – very clear – thanks for taking the time to explain. Offset it is!

Thanks Terry – could you explain why a redraw is different to a offset?Both my bank and my accountant have said they have basically the same effect?It is because a redraw changes the actual interest charged (that is therefore deductible) whereas an offset doesn't? Or is that completely wrong?

I am confused about this too and had the same question.My accountant has recommended IO to me for my currently property, soon to become my investment. I understand why – but what I don't understand it, how do you ever pay it off then?I had planned to pay it off so that when I retire it will be an income stream.I have seen advice on here that says…[Read more]

Thanks Richard, I appreciate the advice.Yes, I can see that a planned out strategy would be preferable in every way! I am not sure what, if anything, I can do to improve the situation now – I certainly don't want to be signing up to a loan that isn't the best one for my circumstances, so I will ask the Bank if there is another way and explore…[Read more]