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Interest in Advance

Discussion in 'Accounting, Tax & Legal' started by sandydubes, 2nd Apr, 2012.

  1. sandydubes

    sandydubes New Member

    Joined:
    5th Mar, 2012
    Posts:
    3
    Location:
    Melbourne
    Hi,

    I am in the process of setting up a Fix rate Interest only home loan that allows advance payment of annual interest.

    While I am aware of the benefits, I am not sure about how (and what accounts) to receive the rental income so that it does not become idle money for the year (not generating any income or offsetting any interest).

    Note that the loan product does not have a redraw facility or offset. Only upto $10k of extra repayment is allowed in a year. My rental income is expected to be @26k per year.

    Thanks and Regards,
    Sandy