What are peoples thoughts on paying IO on your PPOR? I know of someone who has a >500k PPOR mortgage on which he pays the interest only. This frees up remaining income for school fees, kids sports,lifestyle etc. His justification - The property value in the end will easerly cover the mortgage when it is time to pay it and the family can have a less limited lifestyle now. My first thought was, "your crazy", but I can see the merrits.