Hi there, my partner and I are low income and need to relocate and let out our current property and rent another in our new location. In case we get into trouble I am considering going to an interest only loan with full offset. From my understanding this would give me lower necessary repayments, while allowing our current savings for our wedding to reduce the principal. So essentially it will end up the same as a Principal and interest loan but should our savings dwindle we have less required repayment. Is this the right way to go or should we wait until the savings dwindle to move to interest only as they seem be for limited durations? Thanks for your time, any advice would be appreciated!
Hi KMMK
If you want to increase cashflow then IO is the way to the go. As you’ve mentioned, you can place your savings into the offset and reduce your interest repayments. There’s generally a fee payable for making the switch, however you might be able to get this capitalised onto the loan.
Best of luck with the wedding
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thank you Jaime! Fingers crossed we can afford some kind of honeymoon haha.
Haha, you only live once. Don’t let the pursuit of money stop you from living today.
All the best
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Remember: you will make money from your property whether or not you pay this off. Why struggle?
The item in life that makes you money is the growth of an asset, not how much you can pay off….. that is unless you have a ridiculous income.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
