When are Top Up's OK?

Discussion in 'Loans & Mortgage Brokers' started by applebyte, 16th Aug, 2015.

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  1. applebyte

    applebyte Member

    Joined:
    11th Jul, 2015
    Posts:
    12
    Location:
    QLD
    Hi,

    Are top up of existing loans ok in terms of deductibility and not having mixed purpose funds, if the existing loan is IO loan of an investment property, and the top up funds are going to be used for that particular investment property? (e.g. for renovation, or other expenses related to that property, e.g. rates etc...)?

    Cheers
     
    applebyte, 16th Aug, 2015
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,653
    Location:
    Gold Coast (Australia Wide)
    The answer is "top up" is a notional term

    most lenders allow the existing loan to be increased, OR a separate one to be created

    Usually best to have a separate even if the current prupose may be deductible.

    ta

    rolf
     
    Rolf Latham, 16th Aug, 2015
    #2
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