Interest only on total loan

[havanfun]

Hi Forumites,

I recently took out a loan with AMP as part of a staff package. Buyers beware. I took the loan out at 80% of the valuations on 2 properties, putting the excess funds, approx $30k back into the account. On receiving my first statement I have been charged I/O on the maximum funds with no accounting for the extra $30K. Therefore the interest on the $30k is going to pay off my loan. Not my intention, which was to pay the extra funds to pay for maintenance, rates etc.

In your opinion, can I withdraw the extra funds, place them in a interest bearing account and claim the interest on the loan as a deductabile (and the interest on savings as income). I can obviously use the funds to purchase investments, say shares, but I want easy access to the available funds.

Thanks in advance,

Havanfun

[Rolf Latham]

Hiya

Sounds rough, go back and get them to explain that one, unless its a fixed rate loan, and your principal is being reduced accordingly

Ta

rolf

[Kristine..]

Hi Havanfun

AMP loans are simple creatures designed to operate smoothly with a minimum of fuss or fees.

Without knowing which product you have, as a general rule you can arrange to have up to four splits per loan provided that the minimum amount of each split is not less than $30,000.

Why not simply arrange for your $30,000 to be in a split facility of it's own? AMP do not charge a redraw fee (except on the Advantage Loan product).

Talk to you broker / loans officer. If you can't sort it out, I am happy to pass your question on to my AMP BDM who is very knowledgeable with many years experience.

Glad to hear you're havin'fun!

Kristine