I was browsing credit card products this afternoon. I started wondering if I could use use a 0% balance transfer on a CC to pay down my mortgage.
I currently have a line of credit with Bank A (with nothing owing). And a 55K mortgage.
Bank B is offering 0% interest free transfers for 12 months.
My thoughts are to maybe move $10k from bank A into my mortgage offset account. Then open a credit card with bank B and transfer to 10K debt onto it.
At the end of the 12 months I can move the money back and pay off the mortgage. But wouldn't have paid the interest on the 10k owing for the year. This could potentially save me around $650.
Is that how it would work ?? Or is there some catch I don't know about?? I don't have a good understanding of how a lot of these financial products work.
Thanks a million.
I currently have a line of credit with Bank A (with nothing owing). And a 55K mortgage.
Bank B is offering 0% interest free transfers for 12 months.
My thoughts are to maybe move $10k from bank A into my mortgage offset account. Then open a credit card with bank B and transfer to 10K debt onto it.
At the end of the 12 months I can move the money back and pay off the mortgage. But wouldn't have paid the interest on the 10k owing for the year. This could potentially save me around $650.
Is that how it would work ?? Or is there some catch I don't know about?? I don't have a good understanding of how a lot of these financial products work.
Thanks a million.