Hello, I am looking for some comments on how to best structure my loan when I refinance my mortgage in the near future. I have a loan of just over $250,000 on an investment property (townhouse) purchased for $410,000. I believe that the value would be approx. $435,000. The loan is at a crappy rate (4.7%) with no offset. It is currently being rent out for $420 per week. My wife owns our home outright, it would be worth at least $600,000. In the next 12 months we would like to do some significant renovations, which I would expect to cost between $200,000 - $250,000. We have over $120,000 in cash, that we are saving for renovations, which we would like to put on an offset until we do the reno. We would need to borrow between $100,000 - $150,000 for the renovations. I make approx $110,000. My wife is currently on maternity leave and will be for the next few years at least. I plan to move to a mortgage with a much lower rate and an offset. My key questions. Is it worthwhile to change to Interest Only? Can I combine the loan for the renos with the mortgage and would there be tax benefits for this? Are there any other loan related or tax related considerations that I should be aware of? Thanks in advance!!