Hi, first time poster but have been lurking in the shadows. I have learned lots but still a long way to go and hopefully I’ll be able to contribute knowledge and experiences in the future. I have been working for the same Federal Government department since I graduated university 12 month ago, I am currently on my fourth non ongoing contract with them am I will be commencing an ongoing graduate position in February with the same department. I am aware obtaining finance might be difficult as I am currently still on a temporary contract until February. My current salary is in the mid $60,000s and I have no dependents and currently I have minimal living expenses (I don’t currently pay for accommodation). I am looking to purchase a PPOR as my first property, my current plan is to pay down the principal, then use the equity to borrow 105% for investments (for better deductibility). I am looking at properties up to 400k, I have the 20% deposit plus 5% for closing costs. I acknowledge that a relatively expensive PPOR will effect my borrowing power for future purchases but hopefully I will be on a better income in the next couple of years. I would not be happy rent vesting as I want a PPOR on an acreage for lifestyle reasons. Although I am concerned about paying CGT on a property if it is over 5 acres. In the future I would consider renting the PPOR out for a while (once some equity is paid down) if it would help with borrowing power. Are there any obvious flaws borrowing 80% for the purchase and paying down the principal as fast as possible? The bigger deposit the better? The theory being it will reduce my monthly repayment and increase borrowing power. Also what loan features should I be looking for? I know I need the ability to make extra repayments(without penalty), I do not think I need an offset account as I am more interested in low fee and interest rate so I can repay it faster. Thank you in advance for your time.