Hi All,
I currently have a breakfree package with ANZ which allows me to have sub-accounts. I recently called them up hoping to get a line of credit to invest in a business. I was told rather than getting a LOC I could get a loan as a sub-account with the package. That means I save on interest and fees. It sounds great-is there a catch (like tax wise)? So why do people get a LOC for their deposit and cost for their investment property?
Thanks
With a LOC you do not have to state the purpose and if you do it is not critical to you getting the LOC.
With the break free you are charged a $375 yearly fee
it is a professional package and may only be available to lenders with higher loan amounts.LOC is used to unlock equity that is usually being wasted and the owner has a lower loan.
I am in this situation I have a loan of $4k but huge equity.
so to unlock the equity an LOC would be required.
Also I do not have a job so servicing a large $250,000 loan is impossible so I would not be able to access another split loan in a professional package.thanks duckster
so i'm really better off with a split loan as i'll be saving cost.
I odn't think there would be any tax issues as long as the LOC has a separate account number.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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