Contributions to offset account

Discussion in 'Loans & Mortgage Brokers' started by 70seven, 4th Sep, 2015.

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  1. property world

    property world Well-Known Member

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    I need to research how offset works again.

    Say i have a 300k loan

    But 20k in an offset on that loan.

    Does that mean i then only pay interest on that 280k?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    yep
     
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  3. benk

    benk Member

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    What if I borrowed 105% and had 10k left over unused that was automatically deposited into my offset account. Does that affect deductability?
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes it does. See tax tip 1. Also have a mixed loan problem now
     
  5. Waterboy

    Waterboy Well-Known Member

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    Why oh why?

    Maybe it doesn't contaminate the tax deductibility but you are not maximising deductions.

    Is there any reason why PPOR has no offset? Is it fully offset?

    If you have a lot of extra funds, why not chill out and spend on a European holiday? Life is short and must be enjoyed. Your financial wealth is zero when you die.
     
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You can do that if you wish, just make sure those funds come from a segregated loan.