Or just set it-up as a second IO split on the variable product. If it's set-up as a second facility you'll be able to easliy identify the deductable debt from the non-deductable.
Thanks Jamie. Yeah, I found out from my bank and I am actually able to set up a separate account for the new IP mortgage. Cheers.
If you deposit money from a loan into a savings account it is no longer borrowed money, so you may not be able to claim the interest at all. Also sounds like you are just increasing a loan which can be dangerous if you are mixing a home loan with an investment.
For this reason I would suggest a LOC.
Thanks for your reply Terry. I’ve never used an LOC. Is the LOC set up when the loan is taken? And it usually has higher interest? I need to find out out more about LOC.
