I'm a bit confused at the moment. We're with Westpac and we have the Rocket Home loan account. We have a redraw account and an offset account. If, for example:
Value of PPOR = 550K
Loan Balance = 350K
Redraw is 50K (we can withdraw 50K and loan balance will be = 400K)
Current equity is: (550K x 80%) - 350K = 90K
Bank manager said we can use equity (90K) with 50K redraw still intact meaning total funds would be 140K?
We have 50K in the offset account. So if we pay the offset to the loan, the total funds would now be:
Loan Balance = 300K
Redraw is 100K (we can withdraw 100K and loan balance will be = 400K)
Current equity is: (550K x 80%) - 300K = 140K
Total funds will be: 140K (equity) + 100K = 240K ???
Is this correct or am I missing something here? What I expect is that we cannot use the redraw amount any longer as it is already factored in the equity.
Value of PPOR = 550K
Loan Balance = 350K
Redraw is 50K (we can withdraw 50K and loan balance will be = 400K)
Current equity is: (550K x 80%) - 350K = 90K
Bank manager said we can use equity (90K) with 50K redraw still intact meaning total funds would be 140K?
We have 50K in the offset account. So if we pay the offset to the loan, the total funds would now be:
Loan Balance = 300K
Redraw is 100K (we can withdraw 100K and loan balance will be = 400K)
Current equity is: (550K x 80%) - 300K = 140K
Total funds will be: 140K (equity) + 100K = 240K ???
Is this correct or am I missing something here? What I expect is that we cannot use the redraw amount any longer as it is already factored in the equity.