Hi experts,
I recently got my equity loan funded against my PPOR and the funds are available in my offset account which is also connected to my PPOR loan account. As I am not settling for another month for my new IP, I moved the money to equity loan (separate loan number) thinking I will redraw down once the money is required. Reason being I cant claim interest while IP is not settled yet. Should have done a separate offset account against equity loan.
Did i contaminated my new equity loan by doing this? Is the interest on redrawn amount is still tax deductable considering it will be used for funding deposit amount for IP? or should i need to arrange for new loan now by paying out this equity loan considering i have a month to arrange the finance.
Thanks for looking.
VG
I recently got my equity loan funded against my PPOR and the funds are available in my offset account which is also connected to my PPOR loan account. As I am not settling for another month for my new IP, I moved the money to equity loan (separate loan number) thinking I will redraw down once the money is required. Reason being I cant claim interest while IP is not settled yet. Should have done a separate offset account against equity loan.
Did i contaminated my new equity loan by doing this? Is the interest on redrawn amount is still tax deductable considering it will be used for funding deposit amount for IP? or should i need to arrange for new loan now by paying out this equity loan considering i have a month to arrange the finance.
Thanks for looking.
VG