Margin Loans Cheap Margin Loan (Take 2)

Hi all,
I have realised my last plan for cheap margin loan was flawed - and appreciated your comments.

Does this one work?

I have a 0 balance equity manager account at 4.4% with a maximum limit of 200k.
Can I take the 200k and deposit in a savings account, covert the loan into an interest only account (2.6% with my bank) with offset against the saving account - then drip the balance of the savings account into the market (index funds). My intention is to claim the interest on the IO loan as a tax deduction against the dividend income.

Thanks

 

are you asking if you can borrow money and park in an offset account and then invest in income producing assets and claim the interest?

see
Tax Tip 1: Parking borrowed money in an offset account https://bit.ly/33l4o4c