Dominique Grubisa, founder and CEO of DG Institute explains how you can reduce your home loan interest rate to as little as 1.25% as well as having your investment property loans tax-deductible.
I want to share with you a very special loan product that’s got a ruling from the Australian Taxation Office.
The ATO have looked at this loan product and they have said for anyone who uses this product, they can get a tax deduction for all the interest on their investment property loans.
If you’ve got a home loan and you’ve got an investment property loan, and let’s say, you’re paying 4% interest on your home loan and 5% interest on your investment property.
What you can do with this loan product is refinance, have both loans separate, you don’t have to cross collateralize but we can take the interest on your home loan and reduce it to as little as 1.25%, whilst taking the interest on your investment property and making that, say, five and a half or 6%.
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What that means is your loan repayments on your home loan, which is really dead money, you can’t deduct that. There’s no negative gearing there. You can make maximum payments off that and pay it off a whole lot sooner at a really low-interest rate.
And for the interest you pay on the investment property, all of that interest is tax-deductible. You can then put in a variation with your employer if you’re on a salary or you can adjust it through your next tax return if you’re self-employed to show a bigger tax deduction.
If you’re receiving a paycheck, what that means is your employer will vary your withholding tax and you’ll get more in your pay packet every month because of that negative gearing aspect.
And the ATO ruling says that any loan that’s approved now, that tax benefit will be for the life of that loan. So this product will enable you to pay as little as 1.25% on your home loan and pay off that bad debt that’s not tax-deductible for you on your personal property, your principle price of residence, whilst getting maximum tax deductibility that can put money in your pocket as of now, your next paycheck.
If you’re growing a property empire, more money in your pocket means more serviceability. Which means you can borrow more to invest in more property.
It’s designed to be able to get you operating efficiently as a property entrepreneur. Maximizing tax benefits and paying off your home a whole lot sooner.
If you want to know more about the Loan Controller product, click here for a free consultation.
Lawyer, Asset Protection Specialist and Property Educator
Dominique Grubisa is a practicing legal practitioner with over 22 years of legal and commercial experience. She is a property investor and developer, an entrepreneur with businesses in Australia and Southeast Asia, a speaker, educator, writer and published author. You may contact Dominique at firstname.lastname@example.org or visit the DG Institute website for more information.
This column has been written for general information purposes only. It is not intended as legal, financial or investment advice and should not be construed or relied on as such.