How to save tens of thousands of dollars and shave years on your mortgage

On this week's episode we discuss ways to save tens of thousands of dollars on your mortgage and also how you can shave years on your mortgage too!

3.00 - What is an Offset account?
3.30 - How does an offset account work?
5.00 - Example:
If you have an outstanding loan of $500,000 and have $100,000 in your offset account, the bank will calculate interest on the loan amount - the offset amount. So in this example, interest will be calculated only on $400,000 rather than $500,000
7.00 - How can your credit card help you save money?
8.00 - 3 rules
1. Credit Card is not your money
2. You must not miss a payment
3. You must be super strict with your repayments
13.00 - Interest saved vs interest gained
14.45 - 2 types of Offset accounts
15.20 - How to get an Offset account
16.40 - What is a Redraw facility
18.50 - Summary
- Offset accounts are like everyday transaction accounts, giving you easy access to your money.
- Redraw facilities let you access extra repayments that you have made on your home loan.
- Both can help reduce the amount of interest you pay on your home loan.
- How you use them depends on your circumstances and how you prefer to manage your finances.
-There may be different tax implications for offset and redraw if you decide to rent out your home.

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*Note that all information in this episode is based on information that is constantly changing and these are unprecedented times*

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