Why does it matter for future investors?
If you later rent out the home, the deductibility of the debt generally follows what the borrowed money was used for. Money redrawn from a loan and spent on something else can change the character of that portion of the debt.
The capital gains side is covered in renting out your home and the 6-year rule. Money sitting in an offset was never repaid into the loan, so the loan balance is undisturbed.
That is a tax question rather than a lending one and belongs with your accountant, but the structure decision is made when you take the loan.










