All Topics / Finance / pay monthly mortgage and withdraw it too?
Hi guys,
Following up from my previous post titled “Where is my money going?“ I would like to ask the following question.
In summary,
My loan is now ~$105G owing.
I have $109G in an offset.
The sum is that I have enough cash to pay the loan off in total.
In the short term, I would not like to close the loan off, but have learned from this forum that I am still required to pay the bank a minimum amount per month.So I am now reducing my minimum payements to that required by my bank (plus a little in case rates rise)
Can I withdraw this amount every month as well, so in fact the monthly payment is just a token gesture to maintain the loan?Thanks.
Hi GSSW,
Withdrawing the loan repayments may be possible, providing your loan has a redraw facility,
However, certain lenders do charge a fee for each redraw transaction, and may have a minimum redraw criteria.A much simpler option would be an interest only loan, in this case there would be no requirement for principle repayments.
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Thanks Steven,
Will there be a charge (CBA) to change to an IO loan?
You are right, there is a redraw charge.
How about if I take the equivelent amount out of the offset account?GSSW,
CBA will charge a $300 loan switching fee,Keep in mind you will be required to make interest repayments if the balance of your loan exceeds the amount of funds in the offset account.
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi again
It would probably be best just to pay the $300 and switch to IO. You may even be able to talk them into waiving this. This just keeping the same amount in the offset , should result in no interest payable.
Putting money in and taking it out again can have tax implications too – if it is an investment.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks guys!
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