How darling is this child’s playhouse designed by architect @wfuqua ? ❤️ It is a replica of the family’s historic home, which I featured last week at #theglampad . ❤️ Wilson is one of the best architects in the country, and I can never get enough of his work! 📷 @wfuqua#onetofollow ...
A 100% offset account is a separate savings account that is linked to your home loan. The amount held in your offset account is subtracted from your loan balance each day, reducing the interest charged.
For example: If you have a home loan of $300,000, but you have $20,000 in your offset account, your interest is calculated on $280,000.
Features of an offset account:
• It has normal transaction account functionality so you can withdraw funds easily and as often as you like without needing further permission.
• For investors, this may be the more effective option for accounting and taxation purposes.
This feature allows you to withdraw any additional repayments you have made on your mortgage through the home loan account itself. Until the funds are redrawn, however, they go onto your home loan, thereby reducing the interest charged.
For example: If you have made additional repayments of $20,000 on your $300,000 home loan, interest will only be charged on $280,000. This $20,000 is available for redraw if you require it down the track.
Features of a redraw facility:
• The redraw funds can usually be easily accessed online or by speaking directly with your lender. Each lender has different options so be sure to check your terms and conditions.
• You can see your home loan balance reducing which can be a mental boost.
• Fees may apply to redraw funds (depending on your loan).
Effects of paying an additional $200 per month: