Wanting to refinance variable mortgage on PPOR to take advantage of cashback deals. We are partway (70%) through making our homeloan deductable through debt recycling (Split loan: paying off original split A and drawing back off loan B for investments)
Mu question is, does anyone have any advice on what to avoid so that the deductable part doesn't become 'contaminated' in the eyes of the ATO? The first contact I had with Bank of Melbourne indicated that I couldn't preserve the structure from my existing loan and I don't like the idea of splitting once it's settled in case the ATO sees it as mixed from that point on.
With a number of lenders offering $3k - $5k cashback it seems like a no brainer to refinance at the moment but want to get it right. As an aside… has anyone done mulitple mortgage refinances in a year - seems like it'd be more lucrative than CC churning especially if LVR is <60%.
This is the exact thing that stops me from refinancing our PPR - it's too complicated haha. I believe not all banks are able to handle the split loan structure and drawdown facility, so this may limit your options. May need to look into which banks offer loan splitting that can be used for debt recycling. I do it with AMP Bank, I believe Macquarie Bank offer it too.