Hopefully I've posted this in the right section otherwise apologies in advance. My current situation is: PPOR - current P&I Loan balance $410k with an offset account with same amount in it. i.e. paying off 100% Principal at the moment. IP (Previously our PPOR and refinanced to 80% LVR 2yrs ago) - current I/O balance (2 years into a 5 year I/O period) - $400k with approx. $100k in offset account with all surplus funds being deposited into this account. Current rate of savings in the order of approx. $70k/pa expected increase in offset balance. Don't really have any long term strategy at present and gut feel is we would sell our PPOR in the future (say within 5 years) to buy another PPOR rather than converting to another IP. Or if we kept it as an IP then it would also make sense to convert now to I/O (same as what we did with our first PPOR). Given we're paying 100% principal off, would it be prudent to look into converting this loan to I/O as well and increasing the rate we build up the IP loan (say approx. and additional $20k/pa?). What would the cons be to this outside of reducing my tax deductions?