SMH article - "withdraw money from your redraw now"

Discussion in 'Loans & Mortgage Brokers' started by big_ben02, 19th Aug, 2018.

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  1. virgo

    virgo Well-Known Member

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    I just called CBA:

    Step 1: Create a new offset account and link to the existing loan

    Step 2: Sweep the redraw amt into the new offset account.

    Easy and painless:p
     
    virgo, 24th Aug, 2018
    #41
    freyja likes this.
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    ... and what are the tax implications of this action?
     
    Simon Hampel, 25th Aug, 2018
    #42
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  3. virgo

    virgo Well-Known Member

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    You tell me:)

    Old scenario Loan 20K ( Redraw available 300K)

    New scenario Loan 320K
    Offset 300K
    Net loan 20K

    The loan is interest only....
     
    virgo, 25th Aug, 2018
    #43
  4. Simon Hampel

    Simon Hampel Founder Staff Member

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    Investment loan?

    What have you used the redrawn money for?

    Will you ever use any of that money in the offset account for any personal use?

    Is there any other non-borrowed money that has been put into the offset account?

    I suggest you read through @Terry_w's very first tax tip: Tax Tip 1: Parking borrowed money in an offset account
     
    Simon Hampel, 25th Aug, 2018
    #44
    Terry_w likes this.
  5. virgo

    virgo Well-Known Member

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    Ok thanks!
     
    virgo, 25th Aug, 2018
    #45
  6. Terry_w

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

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    Terry_w, 25th Aug, 2018
    #46
  7. chylld

    chylld Well-Known Member

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    I can't tell if news that my CBA redraw disappearing tomorrow is scaremongering... but I will admit it worked on me and I swept most of my available redraw into my (empty) CDIA account.

    I have a few things I need to cross-check...
    1. The new interest won't be deductible until I actually purchase an investment, right? I would think that money just sitting in the CDIA doesn't count as an income-producing purpose
    2. In that case, will I have to move the funds back to the loan and then purchase the investment directly from the loan in order to repurpose and establish deductibility?
    3. Is that safe to do if CBA does make redraw vanish tomorrow? Will money deposited into my loan splits also immediately disappear or is tomorrow a one-off sweep on their part?
     
    chylld, 31st Aug, 2018
    #47
  8. rookie101

    rookie101 Well-Known Member

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    So I just logged onto my internet banking and the entire amount of funds I was ahead within the mortgage has been deleted with no redraw available? Any ideas?
    The offset hasn't been touched.
    All payments were ahead of time. Never missed a payment.
     
    rookie101, 4th Jan, 2019
    #48
  9. Joynz

    Joynz Well-Known Member

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    What do you mean by ‘deleted’?
     
    Joynz, 4th Jan, 2019
    #49
  10. SatayKing

    SatayKing Well-Known Member

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    A way out there thought. Contact the provider asap either by phone or email and ask Why?
     
    SatayKing, 4th Jan, 2019
    #50
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  11. chylld

    chylld Well-Known Member

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    • Which bank?
    • How far are you into your mortgage time-wise, e.g. 5 years into a 25 year loan?
    • Did you adjust your repayment down at any time? (noticed CBA offered me this on some of my splits where I was ahead)
     
    chylld, 4th Jan, 2019
    #51
  12. dabbler

    dabbler Well-Known Member

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    As a thought....I have seen this when they do system maintenance.....things may not show up......so log in again first....maybe from another browser too.
     
    dabbler, 4th Jan, 2019
    #52
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