7676 replies to this topic

[Morgan]

A mortgage offset account is simply a savings account linked to your loan account. Unlike an all-in-one loan that combines your credit card with your transaction accounts, an offset account works like a regular savings account. The big difference is that the balance in the savings account is offset against that owing on the mortgage. Any ‘notional’ interest on savings is earned at the same rate as the linked loan.
Over time, savings in your offset account can help to reduce the loan principal, allowing you to pay off your loan sooner or build up equity.

[B4TT]

I had heard that the offset accounts are still not as a good as just smashing money off the loan.

[Shaz]

If you have a $300,000 loan, and you have $10,000 in savings in your offset account, the interest on your mortgage is calculated on $290,000.

I had heard that the offset accounts are still not as a good as just smashing money off the loan.

They're exactly the same.

Its just the persons acceptace to discipline thats the contributing factor in whether or not it is effective.

[B4TT]

fair enough!


I have the discipline of a rotting potato with a crack addiction..... I don't even know how that works but I am sure it has no discipline.

[Adam]

If you have a $300,000 loan, and you have $10,000 in savings in your offset account, the interest on your mortgage is calculated on $290,000.



They're exactly the same.

Its just the persons acceptace to discipline thats the contributing factor in whether or not it is effective.

By discipline, do you mean not spending that money?

[Shaz]

By discipline, do you mean not spending that money?

Correct.

[Adam]

Offset account is a good idea!

I have epic amounts of discipline. When I want something, I pick it up, think about paying, whimp out and put the item back.


HOPE I EDITED THAT QUICK ENOUGH!

[Delete This Account]

I saw something about virgin and buthole.

[Adam]

Lol. It left me open for all kinds of comments about bad reception and dislike of beer

[B4TT]

I see something I want and buy it and worry about where the money is going to come from later ...... LOL

[Morgan]

Offset accounts are probably a good idea but I'd rather chuck it on the mortgage and forget about it.

When I buy stuff I like to have the money ready to go. If I don't, I won't buy whatever it is. If it's an emergency or something with an urgent due date, there's always the credit card.

[Shaz]

I just buy things when I want them, without thinking it through.

I have no discipline.

[B4TT]

Welcome to the club my crack addicted potato friend!

[Adam]

I don't wanna go too much into the details of the amount of money and things like that, but it is meant to be spent, but while we are waiting to spend it, I want it in the best place possible.

I won't spend it on crap. Because I'm awesome at not spending money.

Ask Rach!

[B4TT]

You already said it was 10K.....

[Adam]

Pretend that was a hypothetical amount

Going to cost co to buy a new jack this weekend.

[Shaz]

I always forget that people like to keep their finances to themselves hey.

I am so desensitized to it now, because I deal in it all the time, that I often ask people questions which they consider personal, but I don't.

Hahaha.

[ams]

Going to cost co to buy a new jack this weekend.

A $10,000 one with your $10,000 you have?





10,000.

[Adam]

I forget that gt is the Internet and openly available to everyone haha

[Shaz]

Josh - Just bought some RIO shares, after reading that they have "stumbled" across a diamond mine in WA.