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Hello,
Just wondering what you all do in terms of your PPOR mortgage? I am looking into making payments off the principal for psychological reasons but not sure if this is a smart move. I will still keep most or a big chunk of the savings in the offset account.
Thanks
often not the best idea as an all common occurrence is people turn the current ppr one day and you can only claim the interest on the loan balance. You are not allow to redraw ect and claim that interest. I had one last week where a customer had 400K in the offset account against his 400K loan, he decided to move the 400k into the loan which automatically paid out the loan so he could not redraw the funds he needed. to compound the problem he recently left his job and was using that 400K to get by while he did a couple of developments!!!!
I am looking into making payments off the principal for psychological reasons but not sure if this is a smart move. I will still keep most or a big chunk of the savings in the offset account.
Thanks
Hi,
With an offset account, is there a bank that will set the monthly repayment based on the net amount of Loan and offset account?
I have a 500k loan on PPOR and 235k in 100% offset so net is 265k.
My qibble is the fact that the monthly payment is based on the $500k. Is it asking too much to achieve a monthly loan payment based on the net of 265k?
I figure the bank is slowly eating away at my funds in my offset account, probably about 2000 a month more than I'd like, and reducing the principle too.
I thought about refinancing with another bank, borrowing 265k to payout this current loan, but correct me if I am wrong, this refinance will just mean my current bank will take my offset account funds at the time of discharge.
There is a small chance I could be stationed overseas so would rent out the PPOR. Also I like having the Offset account funds availiable
Any thoughts would be much appreciated.
Cheers