Hi everyone
I have been reading with interest a thread that was talking about some banks wanting IP loan interest repayments to be paid only from accounts held with the same bank. See - http://www.somersoft.com/forums/showthread.php?t=58576
I have a new IP loan with NAB and they have insisted on interest repayments being deducted from our (new) NAB offset account. However, the funds we want to use for this purpose are held in an ANZ LOC.
My question is this... The ANZ LOC deals with all the other income and expenses for the IP, so naturally I want the interest repayments to come from this account. If I set up a regular internet transfer of funds from my ANZ LOC into the NAB offset account (enough to cover the monthly interest repayments) can I still claim the interest charged on the LOC that relates to the transferred amount? Clear as mud??...
If I was able to pay the repayments direct from the ANZ LOC to the NAB loan account the relevant LOC interest would be tax deductible. I realise paying the money into the offset account is a cash advance. However the offset account in question is not used for any personal banking and has only ever had money paid into it to cover the interest repayments. No other transactions are put through this account.
Any thoughts? (mine are all jumbled!)
Angela
I have been reading with interest a thread that was talking about some banks wanting IP loan interest repayments to be paid only from accounts held with the same bank. See - http://www.somersoft.com/forums/showthread.php?t=58576
I have a new IP loan with NAB and they have insisted on interest repayments being deducted from our (new) NAB offset account. However, the funds we want to use for this purpose are held in an ANZ LOC.
My question is this... The ANZ LOC deals with all the other income and expenses for the IP, so naturally I want the interest repayments to come from this account. If I set up a regular internet transfer of funds from my ANZ LOC into the NAB offset account (enough to cover the monthly interest repayments) can I still claim the interest charged on the LOC that relates to the transferred amount? Clear as mud??...
If I was able to pay the repayments direct from the ANZ LOC to the NAB loan account the relevant LOC interest would be tax deductible. I realise paying the money into the offset account is a cash advance. However the offset account in question is not used for any personal banking and has only ever had money paid into it to cover the interest repayments. No other transactions are put through this account.
Any thoughts? (mine are all jumbled!)
Angela