My last topic attracted all sorts of good advice so heres another one.
Does anyone use offset accounts against their mortgages? I run a BNZ Total money account against my property company. One of the accounts is the working account but also in the account group I have dumped the kids education fund, a Family trust account, and a another account which is just a cash dumping ground for anything I have lying around. In this particular case I have a $340k loan but I am only paying interest on about $140k due to the offsetting.
My questions are whether this is a valid strategy and if anyone knows of the tax implications? To me it means I have the effectiveness of a revolving credit without the concern that the bank could shut it down.
I was going to ask my accountant but as soon as I open my mouth to ask questions he usually stuffs an invoice in it.
Does anyone use offset accounts against their mortgages? I run a BNZ Total money account against my property company. One of the accounts is the working account but also in the account group I have dumped the kids education fund, a Family trust account, and a another account which is just a cash dumping ground for anything I have lying around. In this particular case I have a $340k loan but I am only paying interest on about $140k due to the offsetting.
My questions are whether this is a valid strategy and if anyone knows of the tax implications? To me it means I have the effectiveness of a revolving credit without the concern that the bank could shut it down.
I was going to ask my accountant but as soon as I open my mouth to ask questions he usually stuffs an invoice in it.
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