Many people, incorrectly, think they need an offset account.
I’ve discussed this in a lengthy blog post previously but I also wanted to say again, that unless you have a specific purpose to the offset being there, or for its use, do you need it?
Borrowers usually pay a higher rate, plus, especially with major banks, an annual fee.
Why add unnecessary extra cost to the loan?
- You need an offset account for business cash – cool
- You need an offset account for management of multiple incomes or properties – cool
- You have a plan involving future tax-deductibility or retention of the loan limit – cool
- Most other reasons – not cool
My recommendation to you is to keep it low cost, low fee and simple, i.e. a basic loan.
There are a few key points to this you must remember – the main one being to make sure you’ve got the ability to redraw prepaid funds and do so without penalty.
You can still organise a neat, supercharged repayment structure around this too.
I’ve got a smorgasbord of basic loan options from the 32 lenders we are accredited with.
To make the switch and start saving, make sure to request a quick 10-minute phone appointment with me asap.
Cheers,
Brodie Brown
Professional Mortgage Broker