The Bank knocked me back the other day on an investment loan. One of the reasons appears to be that all my loans are Interest only including my PPOR ( I have an offset account) I worked out my LVR at 77% but the bank appears to have a higher LVR which is over 80% Financially my figures have never looked better so it came as a surprise even with APRA coming down on interest only loans. If I had paid P & I on all my loans from day one at 7% interest rate, the money in the offset account would cover the principal payment required. I am going to go through this with my broker but are people still able to structure using interest only or are you converting some loans to P & I? Do you clearly need to be under 80% to use interest only?