When there is one mortgage on a property, two owners and the mortgage split into 2 accounts (to be run separately by each owner) what possibilities are there available to each owner.
For example, Jack and Jill buy a house together as Tenants in Common. Jack will live in the house while Jill will live at home with her parents. The mortgage will be split into 2 accounts.
Can Jill have her account treated as Interest Only, while Jack has his treated as a Principle and Interest?
If Jack “rents” from Jill can Jill treat her account as if it were an IP loan and hence treat the interest on her account as a tax deduction?
For those following my posts I’m sure you’ve seen the similarities emerging in all of them. The reason I post certain questions in new Topics is for Relevance as well as searchability (ie, if someone wishes to search it may be easer to find relevant topics)
Hi CJ
Yes, you can have a loan split loan with one being PI and one being IO. But each loan will need to be in both names. I am not sure how the ATO would consider things, but think each person would be half owner of each loan.
I think St G is one of the few banks that will allow different names of sub accounts on their portfolio product.
Terryw
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Ah ok cool. That’s surprised me (being allowed to have the 2 accounts treated differently) but I’m happy that it can be done.
“I think St G is one of the few banks that will allow different names of sub accounts on their portfolio product.”
What exactly does that mean? Each account under our own names I suppose.
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