I have a huge problem. I set up my loan for the first IP deposit (we are yet to make a purchase) as IO. It is a separate split that was made using the equity from our PPOR. The loan funds were paid from the lender into my personal bank account, (they wouldn't leave them in the loan account at settlement). I transferred all of the funds straight back into the loan account except for 1k to ensure it would stay open. I was assured verbally that the loan account could be accessed using redraw or pay anyone, and I was told there was no pay anyone limit. I have now been informed that there is a pay anyone daily limit of 5k, and that the redraw can only be used to redraw funds from the loan account to my linked personal bank account. I cannot change the linked bank to anyone but an account in my name (i.e. can't change it to the payee I want to pay). I have requested a cheque book, and asked if they can make out a bank cheque. Apparently the lender cannot provide me with a cheque book or a bank cheque as they are not a bank, only a lender? I am at a complete loss as to how I should pay the deposit for the IP. The only option available seems to be to redraw the funds to my normal bank account and pay from there however I believe I then lose all deductibility of the interest on that loan account. Is it possible to do this and still make it deductible if I open a new bank account which is solely for this use so I can show a clear paper trail? I do not know of how else this can work- Does anyone have any ideas? I think we will most likely be buying at auction, so will need the 10% on auction day. We have an auction coming up on this Saturday that we were really keen on, but I don't know how to go about paying the deposit if we were to make a bid.