Which is best a home loan redraw or offset account? Always an interesting question. The answer depends on how you want to run your home loan and associated cashflow and additional repayments. The specifics of a home loan redraw or offset account are as follows, Redraw-Most variable rate home loans and some fixed rate loans […]
Home Loan Lender Choice
Is it better to approach “your bank” for your home loan or not? I am often asked this question when clients are considering their home loan lender choice and the answer can vary. Sometimes it can be helpful, sometimes it can work against you and sometimes it doesn’t matter. It can depend on the lender and how well […]
Cut your Loan Term in Half
Borrowing Capacity
Borrowing Capacity vs Budget Capacity A phrase I heard many years ago has stuck in my mind and encapsulates the title of this article. “Just because the bank says you can borrow a certain amount of money doesn’t mean you can afford to.” It neatly sums up the difference between your theoretical borrowing capacity i.e. […]
Fortnightly Loan Payments
Fortnightly loan payments pay off loan faster? A question I am often asked is whether fortnightly loan payments will help pay off your home loan faster. The answer is…it depends. It depends on how your bank or lender calculates your fortnightly loan payments. Yes there are two ways of calculating the payment. One will accelerate the repayment […]