I am looking at refinancing my ppor home loan. Currently io with offset but rate not as good as others that are around and will service. In order to get a lower rate, p&i with offset is lower than io with offset. In the future (but a number of years away) it is possible, but really not certain, that this house may become an IP (may actually just sell it if I upgrade). In the scenario that it became an IP, I would just make sure I had been consistently redrawing from the loan account and putting the money into the offset and I shouldn't have any issues with the deductibility of the interest if taken from the offset to buy a new ppor. Would that be correct? Or could just go without an offset (even cheaper rate) and refinance (to 100% or thereabouts) to an offset closer to the time that (but not directly before) I was had confirmed plans to make it an IP in the future. My personal circumstances (not huge income or expenses) mean that a transactable offset wont make too much difference to interest paid. Seeking feedback as the loan is fairly large and I would appreciate the savings, because I am not certain if it will be an ip in the future (given the property's characteristics also), I don't want to just default to an expensive offset arrangement. Comments on this?