I seem to recall a thread from ages ago,that was talking about whether personal funds (eg: lump sums,salaries,etc) that if they were placed into a L.O.C. account temporarily to reduce the interest,but then withdrawn later to use for a personal- non deductable- purpose, that the interest after withdrawal of those funds (even tho it was your own money) would then NOT be deductable?? Is this true?? As i am about to get a little cash,& would like to put it in Loc till i need it.But am now worried if i do,then withdraw it,back to original loan amount, that it will create an accounting nightmare!
Any advice??[confused2]This is correct.
It is considered as paying off the loan. Taking it back out is seen as a new loan and the purpose wil determine the deductibility.
Redraw is the same.
An offset is the only safe place.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 9853 year fixed rate – 6.69%
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