Loan refinance question PPOR to IP

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Jamie Moore
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@jamie-m
Join Date: 2010
Post Count: 5,069
December 2, 2011 - 10:23 pm
ledgend80 wrote:
i am confused time to talk to the accountant again
Hi ledgend80
Whilst not directly related – I wrote an article for Australian Property Magazine recently on a similar concept here
Hope that helps.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
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ledgend80
Member
@ledgend80
Join Date: 2011
Post Count: 27
December 13, 2011 - 10:23 am
ok so went and seen the account and basically all we need to do is change our current loan from PI to IO and get the redraw account removed. Open another savings account for rent to go into and for expenses to come out of but these can come from anywhere. and when we buy a new PPOR we then have an offset account against this.
Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
December 13, 2011 - 10:49 am
Yes that is exactly as we mentioned in earlier responses.
As Terry pointed out you have had it with the redrawn funds you cant make the interest deductible by refinancing.
You dont have to have the redraw account removed as it will be part of the loan features just change it from P & I to IO and if you cant have an offset account linked to the loan stick the funds in a separate savings account.
No need to refinance to achieve this.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender