Trish - ooh thanks for the tip - I think thats what we had in our last mortgage - is that the same as an account with a redraw facility? I'm not really up with banking terms.

Thanks for everyone - it looks like everyone would do option 2, and we have a good feeling about it too. Going to check out the property tomorrow. I wonder if I can put a link in so you guys can see it - heheheehe.. dunno about links to houses on the market is that allowed?