Looking to position myself for the purchase of several high yield apartments, started w/FHLDS-PPOR

Hi everyone, my investment strategy is to accumulate several high yield apartments over the coming years, with less emphasis on capital growth. About my first purchase:

• 11 months since purchase
• Included the First Home Loan Deposit Scheme (FHLDS), stamp duty exemption and Defence Home Ownership Assistance Scheme (currently covers ~ $278 per month)
• One bedroom generously sized apartment (around 80-90 square metres internal plus a balcony and courtyard) in the Canberra CBD, dual residential/commercial zoned
  
• I originally put 5% down of the $485k asking price and the loan balance is now down to $432k, so about 10% is paid off
• Loan is fixed for three years then reverting to variable with Defence Bank (only several bank options available when using DHOAS)
• Loan repayment minimum: $1510 per month
• I currently clear $8k per month from two jobs
• Expenses excluding mortgage: $4k per month (plus or minus $1k)

My question is, since I’m positioning to buy an investment property in the next few years, in order to tap into the little bit of equity this place has generated, I’ll need to get 20% paid off first (in order to close out the FHLDS requirements), correct?
Or should I aim for 30% repaid to have the 10% to draw on (plus maybe about 5% extra in capital growth) and avoid LMI by not dipping below the 20% threshold?
Alternatively, do I just drop down to minimum repayments and save the surplus to put down a deposit on the IP?

My place is extremely liveable, absolutely perfect for me and I plan on staying here for at least the next 2-3 years. Would greatly appreciate your advice on my questions above or your insight if there’s a better way for me to achieve this. Feel free to ask for additional info as required. Thanks!

 

An offset is being built up with my surplus payments but won’t be accessible until the fixed interest expires (I’ll need to double check that with my bank but that’s my recollection). Is it as simple as continuing to pump as much as possible into the loan then tap into that surplus + equity in a few years time?

 

that doesnt sound like an offset or a redraw. Can brokers comment?

 

Okay double checked the contract. For reference the loan is Defence Bank’s Essentials Home Loan Ultimate Package, it specifically states that it comes with:

• 100% mortgage offset account.**
• Free loan redraw (min $100).**

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** These features are not available during a fixed interest period.

Essentials home loan with Ultimate Package. | Defence Bank

I thought those terms were pretty standard?