OK PCers, I currently only own 1 PPOR and I've seen a lot of advice indicating it's better to put money into the offset account and not pay down the principle in case we would want to convert the property into IP. So I've been doing just that since day dot hence there is no change in the initial loan amount. After lurking in this forum for some time now since the PPOR purchase, I'm ready (mindset) to embark on the IP journey. However, my MB advised that my max borrowing is only ~290k (of course, it was about 30% higher before APRA's new policy) and with that amount, I think it will be difficult buy a decent property in Sydney (my aim is ~400k for an IP). To achive 400k, the MB advised me to use the money in the offset to pay down the PPOR loan to reduce debt and increase the borrowing. When I thought about this, I think I might do that as I don't think I will convert it into IP due to these reasons: 1. Low LVR at about 60% 2. I don't know that to do with the money in offset account. It's not a bad idea to turn it into IP/tax deductible loan 3. Sell and buy in a new area, hopefully I could increase the LVR to 80%. Also there won't be CG tax. What do you think? PS: I will also engage with other MB to get a second opinion. Just that your responses might help me to construct questions/thoughts.