Browse Forums General Discussion Re: What would you do with your home loan? 4Jan 20, 2012 10:55 pm Ok.... I work for a bank and this is what I would do and why. I would put enough in the home loan to make the minimum repayment (in this scenario, $500) then put the rest in the offset account. When I've reached the minimum amount required for redraw from my home loan (let's say it's $2000) in the offset account, I would then transfer that money to the home loan.... And keep paying it into my home loan until I need to redraw the money! This is only because of the way I work with my own money. If I see it sitting in an account as part of a credit balance, then I am tempted to use it. If it's paying off my home loan quicker, then that's better for me and it's not sitting there looking like it's not doing anything, wanting to be used up! Where I work, you don't pay a redraw fee (customers and staff!), so there's no "penalty" for taking it out of the home loan.... Except that now your debit balance has gone back up again! Oh, and once you've taken whatever the minimum redraw is, out of the loan, you can put whatever amount you didn't use, back into the loan.... If you want to. This is because of the type of loan I have!!! Always check with your financial institution what the costs and benefits are for the particular type of loan you are going for! They should explain all of these to you before you sign up The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19091 Thanks mate. Yeah good points! Leaning towards Option 3 to get a bit extra space in the cabinets but not going too crazy high (and expensive). Would require a mini… 13 39682 Bought in Nov 21 at the height of the market (classic). Good area, atrocious floor plan. BUT has land out to the left-hand side that we can extend out on (see second… 0 8770 |