Any good PPOR fixed P&I rates with refinance bonuses going?

Hi all

I’m looking to refinance my PPOR for debt recycling purposes as I want to put my offset funds into shares. Current loan is ~$242K, I would plan to split into two loans - $100K and whatever is left (i.e. depending on LVR and what they would lend). Both loans would be P&I – the $100K would require an offset (that’s my contingency buffer and where I would park funds before buying shares). The remaining loan I would immediately repay, then redraw to use for shares to make the loan deductible. As such, I will need the ability to make repayments (and redraw) on the $142K loan Once I’ve repaid it and then redrawn and the debt is now deductible, I would then fix this loan.

Anyone know of any good offers going round at the moment?

Three things are of interest:

• Quick turn around times. I’d like to get this sorted as soon as possible!
• Refinance bonuses for new lending
• Cheap interest rates, particularly fixed owner occupier P&I rates (the variable one will be largely offset most of the time)

Thanks in advance!

 

The "parking funds" in the offset sounds like it could co-mingle with borrowed funds and will limit deductibility. And if its complex it could leave a non-deductible problem . Just because you originally put some borrowed $$ into a offset doesnt mean that when you spend that money its all deductible. Seek personal tax advice.

Note that you cant expect brokers to assess and give credit advice based on a simple post and determining what lender etc . You should engage with a broker to assist your goals.

Quick turnaround ...LOL. Brokers will know who is faster, slower. I spoke to client yestertday doing a simple same lender loan split fro debt recycling. They told him 6-8 weeks

 

The post was more about cheap P&I PPOR fixed rates (ideally with lender swap bonus) than the debt recycling. That side of things I've sorted out - in fact it was you who told me

Just to be clear - the plan is to have a split loan:

- $100K with offset
- $142K with redraw

Current funds that are sitting in my current offset will be used to pay off the $142K loan. I will then redraw this $142K and use it to purchase shares. $142K is now tax deductible.

Any subsequent savings will be used to offset the $100K loan. When the $100K is eventually completely offset, I will use ~$20K to buy more shares. This doesn't have any tax benefit.

Basically $80-100K sitting in the offset against my PPOR is simply my contingency buffer. Once that offset overflows, I buy more shares. I expect to pay very little interest on this $100K loan as it'll be offset most of the time anyway.