if it is the end of the loan term of course you would need to pay it back. This is just a loan like all of loans really.

You will owe the lender the full amount plus interest. But won’t need to pay it all back until the end of the loan term

If you pay more than the interest you will be reducing the loan amount – but might be able to access it for redraw.

say the interest is $20, you could repay $20.01 if you wanted to. Generally you will only need to pay the interest, with some lenders and products there is no requirement for that until the limit is reached. Interest will be capitalised.

Sorry, I can’t follow so best thing for you would be to get some proper advice

I don’t know what circumstances you are referring to, but it is possible to move back into the original main residence. You could even use the 6 year rule on the second main residence – whether you should or not will depend on the circumstances.

once drawn, partially even, interest starts to accrue. Once fully drawn the same thing expect you cannot borrow any further or capitalise the interest

You would need to repay the interest each month and if you want to repay the loan pay more than the interest. No need for a new loan to repay it.

you can only claim one main residence for the exemption for any overlapping period of time. Which one you choose is important because the other will then be exposed.

most brokers could help with that./

You could eliminate CGT by claiming the main residence exemption, potentially.

Or use the cost base reset to market value at first rented rule and see how much CGT would be payable. It might be nil or very low.

Moving back in won’t help.

Get some specific tax advice.

Are you talking about USA finance. That term is not generally used in Aust.

If you have a LOC here the repayments are generally the outstanding interest each month

Some lenders allow this to be capitalised though.

They are not your assets if held on trust. You might control the trust and be a potential beneficiary though, but just remember this control is only temporary.

If you are paying money, even from a loan account, to the trust then that is something that will work against you in servicing – whether there are losses or not. You will also have some…[Read more]

Yes it would as it is your debt. best to have a company as trustee.

You would have an added issue too in that a trust is not a legal entity but is a tax entity, so could the trust claim the interest on your loan? I have a private ruling application in with the ATO at the moment asking this very question.

I also don’t understand what you are…[Read more]

Example 9
Trustee company owns property and suffers a court judgment. Lenders will no longer lend.

Solution
Appointor can appoint a new clean company as trustee.

Example 7
For a person with a credit blemish a Fixed Unit Trust could be set up to own property with person A owning the units of the trust and person B being the trustee.Person A would be the one with the blemish and once that disappears person A could become the trustee and the beneficial and legal interests would merge and the trust disolve -…[Read more]

Here is a copy of an article that I wrote back in 2016:

Trust Strategies to Increase Borrowing Capacity
Here are a few of examples of how using a discretionary trust can increase borrowing capacity.
Example 1

Trust is set up to own property. Property increases in value. But the director of the trustee has suffered a credit blemish and no…[Read more]

No one can can comment really. You need specific advice.

trusts can’t borrow as they are not legal entities, but holding assets as trustee can improve borrowing cap, if the trustee is a company. I have written about this on here before.

But will it be a main residence or a rental?

These days with low interest rates I think buying a main residence first is ideal because

a) you get a CGT free asset (potentially)

b) no land tax

c) owner occ rates

d) improved serviceability over time

e) ability to debt recycle into investments at lower interest rates

f) ability to add value

g) emotional aspects

h) because it might cost…[Read more]

You can actually have many many residences, but not more than 1 can be exempt from CGT for an overlapping period.

But the good part is that you can decide which one to count as your main residence for CGT at the point of sale of the first one. The strategy is to wait until the first is sold and then make an assessment at that point. In some cases…[Read more]