Hi Dman,
Your accountant is correct,

Outlined below is One option to help minimise non-deductible debt on the purchase of the new PPR,

Please note, this is depending on individual circumstances, and assuming you intend to purchase more investments in the future.

Step 1 (option A)
Refinance current PPR soon to be an IP, with a split loan at 80% LVR
$300K @ 80% LVR = $240K less current loan of $80K = $160K
(Split 1) $70K this is your 20% deposit on the new PPR, (this is non deductible debt)
(Split 2) $80K payout of current loan, and $90K remaining for future investments
(Total deductible debt $170K)

Step 1 (option
Refinance current PPR soon to be IP, with split loan at 90% LVR.
$300K @ 90% LVR = $270K less current loan of $80K = $190K
(Split 1) $70K this is your deposit on the new PPR (non deductible debt)
(Split 2) $80K payout of current loan, and $120K remaining for future investments
(Total deductible debt $200K)

Step 2
New PPR purchase $350K.
Arrange a new PPR loan with a 100% offset attached.
80% LVR = $280K + 20% deposit $70K from split 1, interest is calculated on $350K

Step 3
Place the $120K from split 2 into the 100% offset account, interest is now calculated on $230K

I hope this helps.

Regards
Steven
Mortgage Broker

[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIA

PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

I agree with you Rod,
Structured correctly, a 100% offset offers less risk & can be more economical when compared to a LOC.

Regards
Steven
Mortgage Broker

[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIA

PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

Hi YC,
How much deposit do you have, 20%, 10% or 5%?
A 20% deposit is the usual amount required for low doc finance,
you will also need approximately 5% of the purchase price to cover associated costs.

Regards
Steven
Mortgage Broker

[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIA

PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

David,
The important question here is, do you need a line of credit?
There are other products available that may be better suited to your individual needs,
Research all available options before you commit to anything.

Regards
Steven
Mortgage Broker

[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIA

PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

Hi Dangermouse,
I have replied to your PM,

Regards
Steven
Mortgage Broker

[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIA

PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

Hi Conley & Welcome to the forum,
Talk to a Mortgage Broker with access to a wide range of products/lenders.

Regards
Steven
Mortgage Broker

[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIA

PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

Hi Bear,
Depends on your capacity to service x amount of debt,
Eg, will the repayments on a PPR loan make it difficult/impossible to qualify for an investment loan?

If the answer is yes, then I would suggest an investment loan first; the return on your investment will increase serviceability on the PPR/non deductible loan/debt.

Regards
Steven
Mortgage Broker

[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIA

PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

Hi Hagget,
A few suggestions,,
Organize a split loan when releasing equity from PPR.
Split 1: Debt on PPR = non-deductible.
Split 2: Debt on Investment = deductible debt.

Consider a 100% offset attached to PPR portion of split loan.
Place the funds raised from equity (investment split) in the offset account until required for deposits on future investment.

Regards
Steven
Mortgage Broker

[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIA

PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

I agree with Simon, Don’t Xcoll, I would only suggest a refinance in the case of a better rate,structure, etc,

On the proposed new loan amount you would qualify for a discount off the SVR,

Regards
Steven
Mortgage Broker

[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIA

PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

Hi Trisha,
I can highly recommend Westan and the service that he offers,
He & his brother Alvin, have sourced some fantastic NZ properties for a large portion of my Australian based clients who are investing in the NZ property market.

Regards
Steven
Mortgage Broker

[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIA

PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.