Hi all I am new to this forum. Thanks to all contributors - it is a fantastic read. I have put myself in a less than ideal situation. Late last year I renegotiated my loan contract to get a lower rate. I got a good deal with an online lender but only a redraw account and no offset. At the time I wasn't aware of the tax implications of using a redraw account for a property that will eventually become an investment. I have been paying down the loan and redrawring regularly for the past few months. To get out of the loan ($280,000) will cost me $1400. Obviously I am extremely reluctant to pay this fee having just entered the loan. Has anyone got advice of the best way for me to proceed? I will probably be looking to turn the property into an investment in about 4 years, which is about the same time I can exit my current loan without incurring and ERF. But as I understand the damage will be done to the loan by then (I could conceivably have $100,000 available in redraw, which I would need to use a deposit on a new PPOR). I guess my other option is to just sell my current property and purchase a new IP and PPOR, but that would come at significant real estate cost etc. Has anyone encourtered a situation similar to this before? Any words of wisdom that could help me out?