Hi all, I have a quick question regarding my current loan structure for my PPOR. I purchased my first home two years ago ($460,000), with the aim of turning it into an IP in the future. The current loan structure is a little complicated. Loan application was through one bank however this specific bank had a deal where it set the larger loan with a different bank (to utilise 100% offset and no LMI): Loan 1: $368,000, IO with 100% offset (bank A) Loan 2: $21,000 P+I (paid down from $46,000) (bank B) Loan 2 has a much higher rate than loan 1. Now it has come time to refinance for a better deal. The two options are: Pay off the remaining $21,000 now, keep loan 1 with bank A with the same structure (IO with 100% offset) Merge the two loans together and move everything across to bank B, also IO with 100% offset The rates for both options are the same. I'm leaning towards option 2 as we get to keep the $21,000 and park it in the offset, however I've been told this will reduce any equity we may have as it increases the loan amount. Am I overthinking this? What is the best structure with the ultimate aim of turning this property into an IP? Any advice is much appreciated.