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Agree - smart broker! Its a good idea - best to borrow if you've got the equity there. The borrowed equity that's used for investment purposes is deductible. Given your offset funds sit against non deductible debt, using your $100k in cash will not be deductible. Borrowing leads to about...

It never hurts having it there Liverpool St. But whether its used is about 'return on funds'. Against investment debt, the return is lower as its offsetting deductible debt. Against PPOR debt, the return is higher, as its offsetting non deductible debt. If you don't own a PPOR, its a...

With the rise in broker originated loans in recent years, this set up is the norm that brokers use. Hence theres been a rise in the 'interest only' loan data. The problem is, the regulators dont have a clear handle on the offset account attached to the loan and cant exactly work out how...