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You could do this, however, the simplifier will have a set term for IO ( say 5 years ) – check with ING to be sure.
After 5 years, your repayments will revert to P&I , so even if you have nothing owing, you will need to make a repayment.
Check redraw fees for taking money in and out. If I recall, it is free, but best to check before you do it.
May i suggest you keep a separate split for each investment property purchase, this way , you can apportion the deductible debt to the correct property that you purchase.
Good morning.
Product choice is generally a trade-off between features and rate.
Basic loans start at approx 5% , but offer limited features. You can have interest only and redraw to funds, but generally no cheque books, offset accounts or oher features.
Professional packages are for clients who want to save money on the loan interest rate and other products. If you wish to pay an annual fee, you can access these discounts. They vary depending on loan amount.
Line of credit accounts are the most flexible , offering full internet ability, cheque book and ATM access. However, the rate is slightly higher for these accounts. Currently around 6% depending if it is part of the professional package.
Offset accounts are also a good option to allow you the flexibility of a transaction account that saves you in loan interest.
As richard suggested, best to talk through what you are seeking and why and the best products will become easier to determine.
Agree, a split is the best way to do this. It apportions the use of the debt and your accountant will thank you for it.
Doggity, you are on the right track already.
The product choice should be determined by how you will use the account.
If you want the flexibility to pay in lump sums and draw funds as required, go for the LOC. The cost for this convenience is a slightly higher rate.
If you want a lower rate, choose a more basic loan. ( or one of each ). Most basic loans have very good redraw and IO options, so it will still do the job, just not as conveniently as the LOC.
Cheers
