My current loan 5.84% has a redraw only (no offset). I believe that basically they both work the same way reducing my interest, with the main difference being Tax implications if I use the redraw (for non Home improvement renovations etc).
This isn’t an issue as there is no chance of us renting the home and if ever it was, it would be well after it’s paid off.
Assuming I’m correct here, is there any other issues I should consider regarding putting more money into the redraw and using it later to pay bills etc, assuming I’ve budgeted well. Planning to put a calculated value of money into the redraw each fortnight knowing over 12 mths this will be used for the specific high cost bills, (insurance, regos, etc), and the redraw already in there will not be touched. (So won’t be going backwards).
Any thoughts or recommendations re this? Thx.
This isn’t an issue as there is no chance of us renting the home and if ever it was, it would be well after it’s paid off.
Assuming I’m correct here, is there any other issues I should consider regarding putting more money into the redraw and using it later to pay bills etc, assuming I’ve budgeted well. Planning to put a calculated value of money into the redraw each fortnight knowing over 12 mths this will be used for the specific high cost bills, (insurance, regos, etc), and the redraw already in there will not be touched. (So won’t be going backwards).
Any thoughts or recommendations re this? Thx.