impact of fixed loan on poisoned redraw account

[feihong]

Hi all,

I'm not sure if this question has been asked, but here it is:

Currently I have 50% fixed loan and 50% variable. Since the fixed loan is for 10 years, the breaking cost is rather hefty. Therefore, switching my variable loan from redraw to offset may prove to be difficult.

My redraw account is fully poisoned, as I transfer money in and out of the account frequently. If I decide to fix a portion of this redraw account down the track via a loan split, will it "clean up" the record, thus enabling me to claim the interest incurred by fixed loans as tax deduction?

Thanks in advance.

 

[Rolf Latham]

Hiya

I suspect it wont clean things up since if the loan is fully non ded now, changing the loan type wont help

ta
rolf

 

[feihong]

Thanks Rolf. So I guess I'll just have to quickly pay off the variable portion.

 

[Rolf Latham]

yup

and then you can refi/ redraw in full and get full dedns.

Hindsight is a wonderful tool..............offsets could maybe have saved some hassles here ?

ta

rolf

 

[feihong]

I wish I knew somersoft before I bought our first house!!

 

[Spectre]

Me too feihong... me too...