ING at 4% or IP offset at 5.38%?

[unloadmymind]

One alternative strategy would be to invest extra funds in high-dividend yield shares with full/high franking credits (depending on your risk appetite).

You will preserve tax deductibility on the IP loan interest, and with the franking credits your dividends will effectively be subject to minimal tax.

It's something to discuss with a (trusted) financial adviser if you're not comfortable with this.

As well, is there any reason why you don't want to refinance to a lower-rate loan? So many loans below 5% these days.

 

[4GH1RH]

Will be refinancing in first quarter of 2015 with some additional loans etc. Thanks for the suggestions!

 

[jpcashflow]

Hi

Hi

Keep it simple, If you have no other debt I would put any spare cash in the Offset.

When we had our PPOR just paid off loan in APRIL, we used to put all spare cash into the offset, our wages, holiday money and any spare cash.

Just be disciplined and manage your money effectively and you will be ok...

SO offset all the way