Hi, I am new here, reading the other threads here and Terry's tax tips. Just wanted a bit of advice from the experienced and helpful people here. I understand that I have to seek professional advice but I appreciate the advice given in the forum. It serves as a good starting point before speaking with brokers and accountants. Thanks in Advance. We (Me & wife) bought PPOR 3 years ago. Lender(P&I loan) is State Custodians. We went with them because of the Interest rate and Online reviews ( Loan serviceability was never an issue) . They are good till now. However, I was not aware of the risk of a non-ADI lender with respect to offset deposit. We have now 140 K in Offset and around 20-30 K in redraw (considering not much change in valuation). The current PPOR (2 bedroom unit) is literally at stone throwing distance to Station, Mall, GPs, Childcare etc. We are planning to stay here for another 5 years at least, then buy another PPOR (a house) and convert the current PPOR to IP. As of now, I am considering whether it will be beneficial to buy an IP (approx. 450K) as of now or not. I see two options : Option 1: Just wait to buy 2nd PPOR. Pay as much as possible from offset for 2nd PPOR. No extra repayment to current loan of 1st PPOR. Option 2 : Buy an IP now in an area to get some capital growth over 5-6 years. Sell before buying 2nd PPOR. For the 20% deposit of IP (90K), transfer the required amount from offset to redraw to use the equity. Refinance the Loan. Split into two parts. One part is 90K which will remain in redraw until the IP is bought. Other part is remaining loan amount . Offset set up against this one. Take 80% of the IP as IO Loan. Does the setup look correct? In both cases , considering the risk on offset amount, I definitely need to Refinance the PPOR loan to an ADI . Currently I am at 3.47% plus an annual fee of $300. Is it matchable? If I approach a broker, what should be my expectations? And is it possible to cover the exit fee somehow? I am aware of Refinance loans with cashback (NOT cash from broker). Is that an option?