I called my bank yesterday to ask about opening an offset account against a loan to sit some funds in for a few months. I said "I know I can deposit funds to the loan and redraw it. This money will be spent on an investment house, but if we decide to buy a car, then drawing funds for a car via redraw from a loan totally used for investment would contaminate that loan and we couldn't continue to claim all the interest." He said "I don't think that would matter". Am I right in my thinking? I know initial loan purpose is important, but wouldn't redraw use the same "purpose" test? And if he was wrong, then how many people are being given this advice over the phone by someone who should know better?