I am with SGB and one of my loans is ending its first 5 years I/Only terms and was wondering what thought process is now for rolling these over? IE are we still automatically rolling over to I/O (which I have done in the past) or are investors preferring now to go P&I? I have a number of loans and debt and currently have a good discount so am paying around 4.75% for investor loan interest only however the P&I rate would come down to ~4.2%.... So was thinking it may actually be worthwhile for me to let this flip over to P&I with the following thought process I would be keen to hear what others think: P&I Pros: Better interest rate means saving $'s on interest paid vs IO which is a higher rate (albeit total $ outflow is less for I/only). Paying principal allows loan to be paid down and improves LVR. Better risk profile from bank as paying down debt shows better serviceability. Application process easier for P&I vs I/only (note however legislation/process may change in due course meaning P&I may be difficult to get post 5 years in future?). Interest only Pros: Better cash flow if need funds to invest elsewhere. Tax deductions greater. Ability to have off-set account which negates portion of P&I advantage however different in interest rates of +50bps negates this advantage somewhat. By way of background, I have cash to service P&I and do not have any upcoming need for immediate cash hence why I thought P&I would suit my circumstances... I may also be able to get a better discount rate on this particular investment loan rate given P&I?