I’m considering an equity loan for one of my IP’s to pay off my PPOR mortgage. Is there any benefits in doing this?
Thanks, Troy
No.
The purpose of this new loan will be for your PPOR so no deductions.
You will have the same loan size overall but you have only suceeded in complicating things.
To achieve this you need to make all IP loans IO and pay all the principal payments into the PPOR.
Hope this helps,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985NODOC Loan – 65% Loan – No questions asked!
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by MortgageHunter:To achieve this you need to make all IP loans IO and pay all the principal payments into the PPOR.
And establish an offset account linked to your PPOR account into which you deposit all income (wages and rent) so that the balance helps to reduce the monthly interest bill.
And if you are very disciplined with a credit card use this for your purchases and pay the CC bill off at the end of the interest free period to help maintain as high a balance in your offset account for as long as possible.
If you lack spending discipline steer clear of the credit card strategy.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
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