On this week's episode we discuss ways to save tens of thousands of dollars on your mortgage and also how you can shave years on your mortgage too!
- 3.00 – What is an Offset account?
- 3.30 – How does an offset account work?
- 5.00 – Example:
If you have an outstanding loan of $500,000 and have $100,000 in your offset account, the bank will calculate interest on the loan amount – the offset amount. So in this example, interest will be calculated only on $400,000 rather than $500,000
- 7.00 – How can your credit card help you save money?
- 8.00 – 3 rules
1. Credit Card is not your money
2. You must not miss a payment
3. You must be super strict with your repayments
- 13.00 – Interest saved vs interest gained
- 14.45 – 2 types of Offset accounts
- 15.20 – How to get an Offset account
- 16.40 – What is a Redraw facility
- 18.50 – Summary
– Offset accounts are like everyday transaction accounts, giving you easy access to your money.
– Redraw facilities let you access extra repayments that you have made on your home loan.
– Both can help reduce the amount of interest you pay on your home loan.
– How you use them depends on your circumstances and how you prefer to manage your finances.
-There may be different tax implications for offset and redraw if you decide to rent out your home.
Property Calculator Australia APP Download link
Android – https://play.google.com/store/apps/details?id=com.propertycalculator&hl=en
Apple – https://itunes.apple.com/au/app/property-calculator-australia/id1048864391?mt=8
Buying property is our passion, helping you do it is our mission!
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*Note that all information in this episode is based on information that is constantly changing and these are unprecedented times*