Transferring funds between two investment loans

Discussion in 'Accounting & Tax' started by Kingnothing, 22nd Feb, 2019.

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  1. Kingnothing

    Kingnothing Member

    Joined:
    4th Jan, 2017
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    Location:
    Wollongong
    Hi all,
    Currently I have split my PPOR loan into A and B
    Loan A is for PPOR. P&I
    Loan B is for 25% deposit and costs for IP, secured against PPOR. P&I

    Loan C for IP 80% and secured against IP. P&I. Different lender to A&B. It has an offset account.

    Can I freely transfer money between Loan's B and C and not contaminate or create a mixed purpose loan? Both B and C are used for the same IP.
    Can I transfer money from Loan B into the Loan C offset? I am not using the offset for any other transactions.
    The reason I ask is Loan B interest rate is lower than Loan C, so I would rather maximise Loan B and minimise loan C.
    Thanks and regards.
     
    Kingnothing, 22nd Feb, 2019
    #1
  2. Terry_w

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

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    not really

    You could redraw from B and pay into C - this is a refinance
     
    Terry_w, 22nd Feb, 2019
    #2
  3. Terry_w

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

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    Terry_w, 22nd Feb, 2019
    #3
    Kingnothing likes this.
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