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With 100% offset it doesn't matter whether your cash is in your offset account on or on the mortgage, as any money in offset account reduces the interest paid on mortgage.
I guess its better to have it in an account u can easily access than redrawing off the mortgage.GlenNess wrote:Qlds007 wrote:Hate to disagree with what other forum members have written but normally I would recommend an Interest Only with a 100% offset account for clients and their PPOR loan.
There
Richard can I ask why you would suggest this for the mortgage on a PPOR ? I thought that that type of loan was really used for IP's more so.
From calcs I've done with our mortgage at an Interest Only Loan we'd end up paying back in interest an extra $300,000+ for the term of the loan even though the repayments are less per month than what we currently are paying.
The though of doing this had crossed my mind, becuase we have now lived in our PPOR for more than 12 months which would significantly reduce CGT if we were to have it as an investment and sold later on.
Look forward to your reply
