Would a 2% interest rate help you pay off your home loan sooner? The good news is that an innovative product is now available that is designed for home owners with an investment property (or who are looking to buy an investment property) that could help you pay off your home loan sooner.
The product lets the owner-occupier and their investment to be bundled together with the same lender. It allows owner-occupied home loans access to heavily discounted rate of 2% while their investment loan receives higher rate to optimise tax deductions on their investment loan.
So why would you do it?
We can help you save thousands of dollars of your loan and significantly reduce the amount of time to pay off your home loan. This product is protected by ATO ruling (ATO website ruling PR2015/2) which means you’re protected under the Income Tax Assessment Act 1936 (ITAA 1936).
There are conditions, such as you must be a homeowner and a property investor, or if you’re one without the other, about to become both. You will also need to pass the standard lender’s lending criteria and serviceability test (which we will assess at no cost to you).
benefits
Rate Discounts
Take advantage of an interest rate discount on your home loan, reducing the amount of interest you pay over the life of the loan.
Consolidate
Instead of taking out two separate loans, the loan reducer product allows you to combine an owner-occupied loan and an investment loan in the one package.
Tax Benefits
While interest is shifted towards your investment loan, you can take advantage of tax deductible interest payments on this portion of the loan.
Enjoy a cheaper owner-occupied rate to pay down the loan faster and increase capacity for tax deductions on the investment loan interest payments.
too good to be true
It does sound too good to be true, well it does. It is an innovative product designed for home owners with an investment property or are looking to buy an investment property with the intention of owning their home sooner and create financial flexibility.
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