Paying down loan but maintaining tax deductibility?

We have a PPOR with an 80% loan and funds sitting in an offset account to decrease interest payable.

Our aim is to move out of this home in 5 years time and treat it as an IP, using the cash in the offset as a deposit for another property.

We would like to buy another IP, but we can’t get the loan as the lenders ignore the cash in the offset when calculating our repayments.

Is there a way we can pay down part of this loan e.g. 100k, but maintain future tax deductibility up to 80%?

Thank you in advance

 

Wheres the ip deposit coming from?

 

Have you talked to one on the forum mortgage brokers ?

Cliff

 

This is a tax question.

The answer is indirectly yes.

Borrow $100,000 from someone else or buy the new house in a related entity or buy the new main residence now

Other than this paying down a loan means you are reducing the debt which will mean less deductible interest in the future.

 

IP deposit is coming from the offset too - I’m referring to additional surplus funds that would be left over post purchase.