Hey all, Just about to get my first home loan. Just curiously, is this example correct? $300k P & I loan... after a couple of years the balance is say $270k. If i move out of this PPOR and make it an investment house, i can only claim 90% of this loan (balance) $270k as investment since i knocked some Principle off. If i was to refinance in a couple of years and effectively 'recoupe' that principle i had already paid, and got a new loan for say $330k (extra $30k from capital growth) and made that house into an investment property, the whole $330k would be tax deductable right? Just curios what loan option to go for. I'm looking at a home package with offset account. If i had an IO loan, and saved excess money into an offset, then i'd have money for a deposit for a 2nd house.. Is this the same as paying P & I, then refinancing when ready to buy 2nd house and getting the principle back out for my deposit? Hope it make sense..