Part 2: Save tax through successful loan structuring

Mar 9, 2018

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How you structure your loans can have a large impact on the tax you pay, your risk, your ability to build wealth, your cash flow and your general financial strength. Efficient loan structuring is a commonly overlooked and rarely understood topic but that’s not to say it’s overly complex. Like anything, you don’t know what you don’t know until you know it. Many people tend to carry a reasonable amount of (investment) debt throughout their working life so it’s especially important for you to ensure your mortgages are your servant, not your master. You can save a lot of tax by optimising your loan structure.

Part 1

Loan structure # 1: Always borrow the maximum and use an offset

Loan structure # 2: Always interest only

Loan structure # 3: Minimise security

Part 2

Loan structure # 4: Diversify lenders

Loan structure # 5: Avoid cross-securitisation

Loan structure # 6: Never mix business with pleasure

Loan structure # 7: Stagger fixed rate expiry

For further details, read this blog

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