hi everyone, i was just wondering what people know about offsetting? (putting money in the same bank as the one your lending money off and not paying or earning interest to that amount off your loan)
any help would be greatly appreciated[blink]
Hi Asjov1,
There are many loans that have this feature. You simply specify to the lender/broker you are dealing with that you wish to have this feature attached to your loan and they will point you to appropriate products.
Regards
Alistairajsov1,
there are many posts related to this topic.On the right hand side, where the menue is located, under the “Forum Board” heading is a search function. Give you topic a search and you will be amased at the info that is found in the history of this website! Try it, you ‘ll be there for weeks on end researching any and all topics of interest. Anything left out would make great new contribution to us all.See how you go. Be amazed – I was.
Cheers
C@34
Hi Ajsov1
We tried an offset account for 12 months. Our loan was quite small and the interest saved was identical to the additiional fees. I also found that i was spending more at the supermarket than previously because of using a card. Used to running a tight budget with seven kids, but kept losing track of weekly spending at the supermarket. Probably good if you have a reasonable sized loan and keep track of spending.
All the best
Ann
Hi
I use one and think it is great. At the moment we have a loan of 83,000 @ 6.75% and have about 20,000 sitting in the offset account. This means we only get interest charged on 63,000. This saves me approx $100 a month. Where else can you get a return of 6.75% for cash at the mo.
However be aware that if you then spend that savings on a new investment it not only costs you your savings but the money you were saving in interest aswell
cheers rick
Originally posted by Ricksta:Where else can you get a return of 6.75% for cash at the mo.
And that is a tax free 6.75% too.
Derek
[email protected]Property investment advice and researched property in quality locations available.
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