2 loans sharing same offset account?

[Mich]

I have a typical std var offset account for my PPOR.

Using my PPOR's equity, if I take out another std var loan (as IP deposit + costs), can I "share" the same offset account as my PPOR?

So effectively the same offset account is getting used twice. Would'nt that be nice and clever?

Cheers,
Mich

 

[auror]

It would be nice and clever indeed, but I suspect that I wouldn't work for that reason would be awesome if one of the brokers on this forum could confirm though!

 

[Rolf Latham]

Hiya

You can assign the benefit of the offset account to ONE loan only.

Keep the use of the offset separate in any case. With the equity being pulled, that needs to be separate from your day to day trading offset acct on ur PPOR otherwise you may have tax issues

ta
rolf

 

[WillG]

Keep the use of the offset separate in any case. With the equity being pulled, that needs to be separate from your day to day trading offset acct on ur PPOR otherwise you may have tax issues

I was under the impression that is doesn't matter what purpose the funds the offset account are used for because it is NOT a part of the loan.

Not sure what you mean by "with the equity being pulled"

Cheers

 

[Rolf Latham]

Hiya Will

I think what Mich wants to do is to place a separate loan on his PPOR for investment purposes ( pull equity) and PARK the funds in an offset until they have used them all. If thats correct, the offset account mustnot be used for anything else except IP related transactions, beause the overall structure acts like a LOC, and any private use will contaminate the deductability and will cause an accts nightmare at best, and ZIPPO dedns at worst

ta
rolf

 

[WillG]

Hiya Will

I think what Aur wants to do is to place a separate loan on his PPOR for investment purposes ( pull equity) and PARK the funds in an offset until they have used them all. If thats correct, the offset account mustnot be used for anything else except IP related transactions, beause the overall structure acts like a LOC, and any private use will contaminate the deductability and will cause an accts nightmare at best, and ZIPPO dedns at worst

ta
rolf

Understood

 

[Thann]

Offset account balance greater than loan.

Does anyone know if it's possible to have an offset account linked to two loans in sequence, once the balance of the offset equals the first loan, start offsetting the second loan.

I'm nowhere near needing to know, I was just curious.

 

[joatmon]

Hi Than
I had the same issue a few years ago. The balance in my offset account equalled the amount in my PPOR's loan - and the balance was rising further. My MB recommended that I just get another offset account against one of my IP loans to put the excess in. This way I'm making full use of the money in the offset accounts.

 

[manny]

I agree, just setup another Offset account once your Offset amount reaches the loan balance... Wouldn't hurt & I can't see you having any additional fees to pay, bank would just do it...

Cheers,

Manny.

 

[danwatto]

I would much rather have two offsets. One for me, one for the wife. I have the opposite situation where Westpac only allow one offset, so it's joint. We were told that we cannot have more than one offset for the purchase because you can't have more than one "rocket repay".

Who comes up with these names for loans???