Hey guys, I have just recently bought my first IP and im starting to pay it off… At the moment im saving up for a few luxuries, what im wonding is, is it better to put all my money into the Home loan and then just redraw on it when I have enough money in there or to just put money aside into a savings account ?
Thanks guys
What is your longer term plan for the funds?
If you need it back from the redraw you can get it. But if you get it back for personal expenses then the new part of the loan wont be deductible.
You will not get much advantage having it in a redraw anyway.
Offset is better in all cases I believe.
Perhaps you could invest the money somewhere?
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