Search results

  1. A

    Pre-paying tax on IO variable loan

    When I called Westpac they said that basically the loan converts into a 12 month fixed loan, and I'm prepaying the interest on that. In that case, I can claim it as a deduction. Correct, because in that case it would just be paying off part of the principle, not paying interest.
  2. A

    Pre-paying tax on IO variable loan

    Usually, at the point of prepayment the loan switches to a 12 month fixed loan. One thing to remember is that if you have an offset against this loan, the offset becomes useless in that it no longer offsets against interest.
Back
Top