Oh dear.

Not only have I been withdrawing excess, but the house is variably PPOR and IP depending on where I’ve been posted. Definitely need a restructure of my accounts – when I move back in, my extra cash will only be offsetting my IP, thus minimising my tax deductible interest and max-ing my non-deductible.

I don’t mean to derail from the OP – but can someone indicate why the redraw is a bad idea? I’ve not infrequently redrawn any excess payments… THe redraws don’t cost me anything to process at least. What am I missing?

My offset account offsets an IP, not my PPOR – thus I was channelling extra cash into the PPOR mortgage but redrawing it when…[Read more]

Thankyou Kinnon for your thoughtful reply and the figures which offer a little hope.

There is no impetus to sell in a hurry, with a major cash flow injection starting in 2-3 months, it will be easily serviced – we can keep it forever. In terms of opportunity costs, both properties are sitting about 80%, and until I pay down the 80k I won’t want…[Read more]