Offset A/C and Fortnightly Payments

We've just started a 100% offset mortgage with NAB (Choices package) and its linked with a transaction account.

As the funds in our transaction account are included in the offset arrangement, is there any point in making fortnightly payments as opposed to monthly payments if the mortgage is P&I?

Thanks
 
As the money is linked in an offset, then technically there shouldnt be any difference as the money will be sitting in either of the accounts, both having the same effect.
 
The difference being that amounts in an offset account can be easily accessed, and amounts paid off your mortgage principle cannot.
 
Thanks guys

Why are you doing P&I payments at all if you have an offset?

Its for our PPOR. We're in the middle of renovating and paying for a wedding and wanted some flexibility with funds over the next several months. Are there other alternatives you'd suggest?
 
Thanks guys
Its for our PPOR. We're in the middle of renovating and paying for a wedding and wanted some flexibility with funds over the next several months. Are there other alternatives you'd suggest?

Interest only and just put extra into the offset account. In practice, you'd just put as much as you can in the offset account and let the IO payments get deducted from that.
 
If you're on interest only you can't make fortnightly repayments, only monthly repayments are available.

If the repayments are P&I, the minimum monthly payment won't change if you've got extra money in the offset (or in redraw for that matter). Only the principal to interest ratio in the repayment changes.
 
if ALL your available funds are in the offsetm you are in effect "paying daily", which will do more than increasing the repayment frequency

having said that, with some fortnightly payments you make 13 mths repayments ( aka pay extra)

ta
rolf
 
As Rolf has said any money kept in the 100% offset is the same as reducing your principle daily. So the more frequent you pay them the worse off you are.

ie: If you payed weekly that interest component you payed is no longer in you're account reducing the interest. So IMO monthly payments are better.

edit: this is the formula I have been using to calculate the interest per day and it has been pretty spot on. (loan balance-offset balance)*interest rate/100/365
 
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