How does Offset and Redraw affect your Mortgage Repayments?
Вставка
- Опубліковано 25 чер 2024
- How does Offset and Redraw affect your Mortgage Repayments?
00:00 Introduction
00:20 The Two Different Mortgage Repayment Types
01:48 How Mortgage Repayments Work
02:50 How Offset Works
03:36 How Redraw Works
04:55 How Offset and Redraw Affects your Mortgage Repayments
10:33 How Does Offset and Redraw Affects Interest Only Repayments
12:08 Conclusion
For more info www.huntergalloway.com.au/ an...
For home loan enquiries
jayden.vecchio@huntergalloway.com.au
Find Jayden here:
www.huntergalloway.com.au/fre...
/ mortgagebrokerbrisbane
www.huntergalloway.com.au/mor...
/ jaydenvecchio
T: 1300 088 065
E: hello@huntergalloway.com.au
Mortgage Broker Brisbane - Hunter Galloway
Head Office: 3 Latrobe Tce Paddington QLD 4064
PO Box 841, Paddington QLD 4064
CBD Office: Level 20, 300 Queen Street Brisbane, QLD 4000
Hunter Galloway are an Award Winning Mortgage Broker based in Brisbane. We help clients from our local area, Australia, and all over the world. We believe buying a home should be stress-free and uncomplicated, and we will work for you to make your dreams become reality.
Next steps and settling your first home
Our team here at Hunter Galloway is here to help you buy a home in Brisbane. Nathan & Joshua Vecchio are Senior Mortgage brokers who specialise in making your home journey easy.
Unlike other mortgage brokers who are just one person operators, we have an entire team of experts to help make your home loan journey as simple as possible.
If you want to get started, please get in touch and we can book a time that suits you - either a phone call information session or a face to face meeting (which doesn’t cost anything for you).
www.huntergalloway.com.au/con...
DISCLAIMER:
This video offers no Legal, Financial and Taxation advice, and the information contained is general and does not take into account your personal situation. The Listener acknowledges, consents and agrees to the viewing of the content presented on the Channel is subject to the full Disclaimer (below) and agrees to be unconditionally bound by this Disclaimer.
Full Disclaimer here - www.huntergalloway.com.au/you...
Get the 5 Best things I've found in the property and finance world every week - for free. hubs.ly/H0qHChB0
This is the only video I've found that actually explains how it affects repayments. Thankyou!
I'm really glad to hear that you found our video helpful in understanding how repayments work! Our aim is to make the home buying process as straightforward as possible, so it's great to hear that we're hitting the mark for you. If you have any more questions or need further clarification on any topic, feel free to ask. We're here to help make your home buying journey as smooth as possible.
Cheers,
Hunter Galloway Team
Thanks bro!!!
Any time
You are the best.
Thanks EJT!
Awesome practice for maximising savings and precious time! Can’t wait to start our journey, thanks guys!
You got this! Thanks for watching Jacob :)
Redraw vs offset.. which is better option ?
Awesome video 👍
Thanks for the visit
Did you add $250 twice? You took away from the interest but also added it to principal?
but you just talked about offset in p/l and l/o loan! what about redraw in p/i and i/o?
Thanks for watching Mariam, please check out: ua-cam.com/video/V4jo7_7bH2A/v-deo.html
What happens if you need to use funds in your redraw? Is your loan term still going to end up shorter because there was a period of time paying less interest and more principal?
Sorry if this sounds like a dumb question. I grew up in a very poor household where home ownership wasn’t even thought of so I’m trying to educate myself as an adult the best I can.
Certainly! If you need to use funds from your redraw facility, it can impact your loan term and how quickly you pay off your mortgage. When you make extra payments into your mortgage, as you do with a redraw, you effectively reduce the principal amount you owe. This means you'll pay less interest over time.
So, if you've been using your redraw to make extra payments, your loan term could end up shorter because you've been chipping away at the principal balance. However, keep in mind that accessing funds from the redraw might extend the loan term again, depending on how much you withdraw. It's a bit like a seesaw - extra payments shorten the term, while withdrawals can lengthen it.
It's a good idea to talk to your mortgage broker or lender to understand how specific redraw transactions will affect your loan term and financial goals. They can provide personalized advice based on your situation.
What happens to my Redraw money if in less than 12 months, I refinance to different bank?
Thanks Ej, so long as you refinance the limit and not the balance. The redraw will remain.
So you saying Interest only loan is not a preferred loan.?
Whether an interest-only loan is preferable or not depends on your specific financial situation and goals.
Interest-only loans typically require you to pay just the interest for a set period, usually 1-5 years. During this time, you're not reducing the principal balance, which means your loan amount remains the same. This can result in lower monthly repayments compared to principal and interest loans, freeing up cash for other investments or expenses. However, once the interest-only period ends, you'll have to start paying both principal and interest, which usually results in higher repayments.
Principal and interest loans, on the other hand, are generally seen as a more straightforward path to actually owning your home outright, as you're consistently chipping away at the principal.
Your choice between the two would depend on various factors such as your cash flow needs, investment strategy, and your comfort with having a loan balance that doesn't decrease for a period of time.
So, there's no one-size-fits-all answer to whether an interest-only loan is "preferred" or not-it's all about what suits your individual circumstances.
@@MortgageBrokerAustralia Thanks, that makes things a lot easier to understand. I now know what works for me best.
So what are the pros and cons of offset vs redraw?
They both achieve the same thing. That is to save interest. They just work differently. So if you're an investor you'll want the offset (best to get advice from your accountant to see if it makes financial sense) and if it's your home you live in, you can use either. Thanks for watching!