Hi Everyone,
I was wondering if it is more efficient to put any extra cash I have for the time being straight onto my home loan and then re-draw if I need or whether putting it into and offset account would have the same effect? As far as repayments go, would they be the same if I put 10k into an offset account rather than putting it straight onto paying off a mortgage directly?
Thankyou,
Anthony
Is it an IP or a PPOR loan?
Either way – offset will prob be best.
If it's an IP – there's taxation implications with redrawing the funds out later.
You won't have the same issue with an offset account.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
6_anthony wrote:Hi Everyone,I was wondering if it is more efficient to put any extra cash I have for the time being straight onto my home loan and then re-draw if I need or whether putting it into and offset account would have the same effect? As far as repayments go, would they be the same if I put 10k into an offset account rather than putting it straight onto paying off a mortgage directly?
Thankyou,
Anthony
Assuming same loans and rates etc there would be no effect in putting it in. The differences will be when you take the money out
Offset = no tax issues
Redraw = New borrowings
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
Thanks guys.
It will be IP for at least the first year then PPOR some time down the track,
Anthony
Best to use offset then – it avoids the risk of contaminating the loan.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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