Hi mates,
I hope you can help me. Me and my husbane have a PPOR which we bought nearly two years ago. We had two home loan accounts against it, as first account for the land & the second is for construction loan. The total loan for both loans is $373,000 (160,000 + 213,000). The value of the house is $425,000
The loan is with CBA under wealth package where the interest is 7.21 ( I believe it's very high). The monthly repayment is about $2,500 for PI
We are both a very less knowledge about home loan as this is our first home and we are only 4 years in Australia (Brisbane).
We really want to payoff our mortgage as early as possible (at present we pay extra payment $50.00 each week for each account). And we plan to put up extra whenever we have cash.
We heard that if we can open an offset account will help to reduce the interest (is this true?) how does it work? And will I be able to change the repayment by weekly (as my husband gets his wages weekly and mine is monthly). Do you think that I should shop around to get better interest rates and is it worth it to refinance my loan?
Our cash saving here around $8K but we are also have a saving at our home country for about $30K (our saving before came to Australia), will it worth it to put it in our offset account too to reduce the rate and can I withdraw the money anytime if we need it?
At present CBA also offering Line of Credit for wealth package where the interest will be 7.31. Which one is better product in order to pay my loan faster than having the offset account?
Wish you can help us with my questions above
Cheers
cantik
I hope you can help me. Me and my husbane have a PPOR which we bought nearly two years ago. We had two home loan accounts against it, as first account for the land & the second is for construction loan. The total loan for both loans is $373,000 (160,000 + 213,000). The value of the house is $425,000
The loan is with CBA under wealth package where the interest is 7.21 ( I believe it's very high). The monthly repayment is about $2,500 for PI
We are both a very less knowledge about home loan as this is our first home and we are only 4 years in Australia (Brisbane).
We really want to payoff our mortgage as early as possible (at present we pay extra payment $50.00 each week for each account). And we plan to put up extra whenever we have cash.
We heard that if we can open an offset account will help to reduce the interest (is this true?) how does it work? And will I be able to change the repayment by weekly (as my husband gets his wages weekly and mine is monthly). Do you think that I should shop around to get better interest rates and is it worth it to refinance my loan?
Our cash saving here around $8K but we are also have a saving at our home country for about $30K (our saving before came to Australia), will it worth it to put it in our offset account too to reduce the rate and can I withdraw the money anytime if we need it?
At present CBA also offering Line of Credit for wealth package where the interest will be 7.31. Which one is better product in order to pay my loan faster than having the offset account?
Wish you can help us with my questions above
Cheers
cantik