All Topics / Finance / Using an Offset account

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  • Profile photo of brunowabrunowa
    Participant
    @brunowa
    Join Date: 2008
    Post Count: 27
    May 4, 2010 - 8:46 am

    Hi there,

    Quick question around using an offset account. I currently pay my home loan (P&I) on a monthly basis. Is there any benefit to making the payments fortnightly when I already use a 100% offset account?

    Thanks,

    Brendan

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    May 4, 2010 - 12:11 pm

    Not really – as long as your money is sitting in the offset – you would be saving the same interest. However, the principle may reduce slight more if you were to make fortnightly payments (because there are 13 fornights in a year).

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 2 posts - 1 through 2 (of 2 total)

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