I read in MortgageHunter’s post that there is a difference between, say, having $50k in a mortgage offset account and drawing on that, and paying an extra $50k into your existing home loan and re-drawing THAT. The difference being the mortgage offset drawdown is NOT considered a redraw.
For practical purposes, does this mean that a mortgage offset account has an account number that is different to the loan account?
The problems people have had with split loans, apportioning loans when they re-draw, etc seems to stem from the fact that everything is coming from one single loan account (with one loan account number).
If mortgage offsets are ‘clean’ in terms of the ATO not viewing it as a repayment of the loan and then re-drawn, does this mean the account numbers are separate?
Regards
Alexyep, different accounts!
Live, Learn and GrowLifexperience
Your offset account can be any other account that you nominate – usually your saving account. Some businesspeople with good cashflow even combine the offset with their business account to save considerable interest on the home loan and reduce the taxable income of the business by not earning any interest on the bank account.
Does this help?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 75% LVR***
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