Hi Glenn,Talk to your accountant about paying interest in advance, if you have the means you can pay up you a years interest in advance so that you could make that interest deductible whilst still working.TLP

I asked that question of the bank, its not an option, when you take out the loan it is disburst into an account, it cannot be disburst back into the loan, so the branch manager told me. Let me know if they are wrong but we had a very specific discussion on this matter.cheersTLP

Hi Terry, Please confirm if I have interpreted correctly: 1. Take out loan (split)2. Funds are disburst into an account (savings)3. Pay funds back into the loan4. Use redraw when I need the fundsNow I thought redraw would be subject to similar treatment?Regards,TLP 

Jamie M wrote:
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.

Hi, currently going through the same process as well and for the lower interest rate I am leaning to this option over a LOC. Question though, where does…[Read more]

Terryw wrote:
Do you understand, from a tax POV,  you can't simply redraw the $50k and make your loan $100,000 with the $50k in the offset

That would be assuming they are refering to IP…. If the redraw is from PPOR then no tax implications I would say.TLP 

Hi,Won't claim to be a successful investor (yet) but here are some options I might consider if in your position:1. refinance PPOR loan to 224k (maintaining 80% LVR and hence  not subject to LMI) and pay down 9k into your personal loan. You would need to crunch some numbers to work out if this is worthwhile and also consider if additional rep…[Read more]

Hi Marty,Thanks for that, spot on and my fears as well.Regards,TLP

Hi,Not seeking any tricks, more a question of which order in arranging finance, i.e.1. Purchase price – 500k2. Deposit – 100k3. Borrow 400knext:Need 100k for renovation:1. Will a bank lend me 80k as long as I have 20k for renovation under construction finance? reason why I ask this objectively is that without seeing the finished product how would…[Read more]

Hi Terry,My Mortgage broker is a CPA, even so this is why im geting further opinions. Main point is that there are 2 offset accounts (1 for each splict loan) 1 offset account is salaries/daily transactions, the other offset account is only linked to 166k so I wouldn't imagine any contamination?  330k – linked to offset 1 (transactional and no…[Read more]

Hi Terry,Can you clarify please, let me explain my scenario:Current PPOR:Property Value: 620Current loan: 330100% offset account linked to this mortgage with wages and savings held in accountProposal:Property Value: 620Refinanced (split 1): 330 (interest is non tax deductible)100% offset account linked to this (split 1) with wages and savings…[Read more]

Hi,Just worndering if anyone knows if the axing of deffered establishment fees applies to existing loans? I have sold a property which will settle in 5 weeks from now and want to know if this would apply to existing loans.CheersTLP

Thanks Ruk, No problems with contamination as purpose of loans would be for investment. Does anyone have any comment on borrowing capacity? Would an undrawn LOC allow for maximised borrowing? (vs drawn loan sitting in offset)Thanks,tlp