Get Your Money Working for You
Revolving Credit?
Do you like to have a separate savings account but like to pay your mortgage off faster – have both!
Using Offset – a well-kept secret
I always operated a flexi/revolving credit facility and had all my salary and wages in that account. That’s what worked for me.
But revolving credit isn’t for everyone – This has been very apparent with the clients I have met in the past few weeks. It’s no bad thing – they like to save – YAY!
But….every dollar you don’t put into your mortgage means you pay more interest over time. But, you can have your cake and eat it too!………..
Offset works for savers…with mortgages. Who’d of thought?
If you have a savings account (or you have money in any type of account – i.e. current or savings….or the holiday account or the Children’s school fund or the vehicle replacement account or the boys or girls weekend account or….you get the picture – then you can pay less on your mortgage interest payments.
Instead of earning interest on your savings, the money is set against your mortgage. As a result, you pay less interest on that debt. For example, if you had a $400,000 mortgage and $30,000 in savings, you would only be charged interest on $370,000.
You could chop nearly 4 years off a 25-year mortgage and save nearly $86,000 in interest.
Continue to save $500 per month and you would be taking nearly 6 years off your mortgage and saving nearly $174,000 in interest.
2 couples I am working with will reduce their 15-year mortgage of $270,000 by approximately 2.5 years (savings of $49,000) and another who has a 25-year mortgage of $460,000 will reduce theirs by nearly 5 years (savings of $172,000).
Stop spending more than you need. Have your cake and eat it.
Call me – I’ll help you with the best rates, the right structure, the right products with the right lender – I can access all the main banks and non-bank lenders.
I can help you negotiate the best possible deal with your existing bank too – I’m ready when you’re ready.
Paul Dow 021-615907
