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From: Gunna Doit
Could someone tell me if I'm understanding this right?
My idea goes like this - Say I have a loan for my IP, with a 100% (or close) offset a/c with it. The interest repayments were $20/wk IO or $70/wk P&I (pretend figures). If I chose an IO Loan, paid the $20/wk off the loan and put $50/wk into the offset a/c, wouldn't that give me the same advantage as the lower interest charge of a P&I loan, but with flexibility of drawing on the extra money if needed? I hope this makes sense, I've rewritten it three times!
Also, what are the advantages/disadvantages of the redraw and the offset a/c's. Is one better than the other?
Thanks guys.
Gunna
Could someone tell me if I'm understanding this right?
My idea goes like this - Say I have a loan for my IP, with a 100% (or close) offset a/c with it. The interest repayments were $20/wk IO or $70/wk P&I (pretend figures). If I chose an IO Loan, paid the $20/wk off the loan and put $50/wk into the offset a/c, wouldn't that give me the same advantage as the lower interest charge of a P&I loan, but with flexibility of drawing on the extra money if needed? I hope this makes sense, I've rewritten it three times!
Also, what are the advantages/disadvantages of the redraw and the offset a/c's. Is one better than the other?
Thanks guys.
Gunna
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