can someone explain to me an interest only loan

It doesn't have to be a LOC, it can be a standard mortgage. That's what I currently have. Just make sure you can pay funds directly from the loan account to whoever it needs to go to and you don't have to move the funds to an offset account, a cheque account or personal savings account. My loan was automatically paid 100% to an offset account and I tried to keep the funds clean and pay from there, agaist @Terry_w's advice... which didn't work of course...

https://propertychat.com.au/communi...ing-borrowed-money-in-an-offset-account.1313/

So before I invested any of the funds I moved all the borrowed money back into the loan account and I only invest funds directly from that account. I guess that's where a LOC can be an advantage, where a bank won't let you invest funds directly from a loan account.

 

Agreed @Perthguy

I have my loan as a normal loan as such also which is used for deposits and ongoing costs for my IPs and also has a redraw facility which is great as I only pay for funds drawn