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My understanding of Centrelink use of deeming rates is to take out the administrative burden of having to check (and perhaps ease for pensioners) actual rates from a wide variety of income sources, hence for most financial assets, they use deeming rates. Per the DHS site: The deeming rules...

It is a conversation worth having. First you assumption that by the time your grandfather dies there will be no equity in the property is most likely inaccurate. What is the property worth now, what area is it in and expected long term suburb growth? Compounding interest on a loan is easy to...