icecream543791
New member
Hello, I asked the bank about paying extra off my loan on top of the minimal fortnightly principal and interest payments and they responded with the below quoted text. Honestly I don't understand the second point. I already have an offset account that lowers the interest I pay on the loan.
Pretty much I just want to know, is there any benefit for me making extra repayments towards my loan? If its not going to impact the principal value and only affect interest then there's no point in making extra repayments right? I should just keep it in my offset account. Or am I missing something?
Pretty much I just want to know, is there any benefit for me making extra repayments towards my loan? If its not going to impact the principal value and only affect interest then there's no point in making extra repayments right? I should just keep it in my offset account. Or am I missing something?
A couple of things to know when putting additional funds into your loan:
- Of any additional funds, we are required to hold 1 month repayment, the rest is shown as available for redraw.
- Any addition funds transferred to your loan, will reduce your loan balance for interest purposes but the funds do not come off the principal and your loan repayments will not change.