My partner and i currently have a marginal loan that my partners dad helped set up.
As it stands at the moment we owe $25,792 on the loan at 8.80% and have a portflolio of $67,892 in 4 companys. It is geared at 37% so we are quite happy with it at the moment.
My question is we have $4600 in cash and are wondering should we pay this into the marginal loan? or pay it into our house and land loan? which has a combined debt owing of $190000.Advice on this and our current portfolio would be appreciated.
I suggest you speak with your accountant however I would assume your marginal loan is tax effective where as your PPR loan is not. If this be the case it should not be too hard to work out
I would have thought it would be better served placing it into your offset account linked to your home loan.
Richard Taylor | Australia's leading private lender
Which ever one is not tax deductable, if the are both tax deductable then the one with the highest interest rate.
thanks guys i will put into my home loan
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