Strategy: Using AMP’s Master Facility to Debt Recycle

Yes you can

 

Yes, you can. You can also attach a visa debit card to either the loan accounts or offset accounts.

 

awesome that's good to know.

so if i create a IO sub-account, do i need to draw it down straight away? if i don't then how is it different to a LOC?

 

i am not sure if it has to be drawn as settlement, I think it might, but no big deal as you can deposit it back into the loan. It can be used as a surrogate LOC without the at call nature.

 

Thanks Terry.

Another question, can it be paid down to 0 without it closing?

 

I am not sure. I would advise not to make it $0 in any case.

 

I've created subaccounts with 0 balance using a restructure form with no issues. Have also paid down loans to 0 balance with no issues.

 

Another feature I discovered, you can change which loan account or offset account the debit card is attached to with a phone call. Can be useful when you're restructuring.

So many awesome features with AMP. Only two things I've found they don't have yet
1. PayID - expect this will be available 2020
2. Bpay view and auto payment - CBA have this and it enables complete automation of rates, utility and bodycorp

 

They also don't have OSKO for instant transfers between banks - still have to wait a few days for funds to appear.

 

I did a transfer from CBA to AMP on Friday morning and the funds where there by the afternoon.

Regards,

Jason

 

But when transferring out of AMP to another institution it can take a bit longer.

 

Another couple of good features:
1. For joint account holders, scheduled transactions are visible and editable by all accounts holders. I know at least one other bank bank this wasn't the case.
2. Very useful and configurable spending/income tracker.

 

Discovered you can create an offset account in one, some or all of the loan account holders.

 

Hi Terry
my first post here,been reading a lot from your tips and found it very useful.

I would like to ask advices that i am planning to refinance to either AMP or westpac for DB in the future and im looking to buy a car using my PPOR equity what is the best way to structure my loan?

loan 350k split into two

loan a 310K
loan b 40k
and i would also need an offset to either of the account?
I am planning to pay down loan b ASAP then i can redraw to invest for debt recycling and will make it tax deductible too right?

If say i might rent out this PPOR in the future is there anything i should avoid for any contamination?

Many Thanks

 

You would want a separate split for the car loan and debt recycle this one first - assuming the interest won't be deductible

 

Thanks heaps Terry!!

 

Hi Terry,

i just wanted to double check if my thinking is right, say my PPOR split is the same and they are all non deductible

loan A 310k (PPOR)
loan B equity 40k (for car ) with offset

can i pay down the loan B and redraw it to invest and it become tax deductible?

thank you

 

that will depend on the circumstance and how you do it. Something you should get your own tax advice on.

 

Purchased vacant land for $365k and settlement is next week on Friday. Do I have to instruct St. George bank to split prior to settlement date?? Or this can be done after settlement.


My situation as follows,

Borrowing loan 292K.
Extra Saving of 200K to keep in offset or split unsure???
I wanted to debt recycling for construction loan and buying IPs in future.

I was thinking to set up like following way ( not sure if I understand correctly)

Split - 1 80k with offset ( for construction loan deposit)
Split - 2 85k with offset ( purchase deposit for IP -1 (Tax deductible)
Split - 3 60k with offset ( purchass deposit for IP -2 ( Tax deductible)

Please correct me Terry_w if I understood differently with debt recycling.