Just a quick question here from a newbie.... I have an interest only loan with an offset account. I've moved o/s and the property was my former PPoR. By the end of this year, I want to use equity as seed money for an IP. Do the funds in the offset account count towards equity or must the principle be paid off? For example, say the property is valued at 400k, the loan amount was 300k and there is 40k in an offset account. Is the equity calculated as 400-300k=100k or 400-300-40k=140k? Given that 80% of equity is accessible, what would my borrowing power be at LVR=0.8?