Browse Forums Home Finance Re: Is it worth having redraw on the Home Loan? 5Mar 31, 2010 12:22 pm viewtopic.php?f=31&t=22766 - my build thread! Time waits for no man. Unless that man is Chuck Norris. Re: Is it worth having redraw on the Home Loan? 9Mar 31, 2010 2:45 pm Site Start: 10th September, 2010 PCI : Friday 27th January, 2011. Handover: 3rd February, 2011 Build Thread: viewtopic.php?f=31&t=37677 Re: Is it worth having redraw on the Home Loan? 11Mar 31, 2010 4:35 pm Blog: http://bluemistkids.blogspot.com "Never be afraid to try something new. Remember, amateurs built the ark, and professionals built the Titanic." Re: Is it worth having redraw on the Home Loan? 14Apr 02, 2010 12:32 pm VICTORY 1800, EN-SUITE, DOUBLE GARAGE, FAMILY ROOM AND ALFRESCO Land Settled: 20 July 2010 Site Scrap: 30 August 2010 Slab Pour: 20 September 2010 Frame Complete: 23 September 2010 Fascia and Gutters: 28 September 2010 Roof Complete: 06 October 2010 Lock-up complete: 28 October 2010 Plaster complete: 29 October 2010 Fix-out complete: 22 Nov 2010 PCI 7 FEBRUARY 2011 Re: Is it worth having redraw on the Home Loan? 15Apr 08, 2010 11:24 pm Be carefull if paying your martgage off quicker and using the redraw facility if you need cash. Depending on what you do with this property later in life means you being able to claim tax on the interest if you ever use this property as an investment. Offset accounts are good if used properly, if not used properly they will cost you money. Also, make sure you have a 100% offset account, you may be surprised how many offset accounts out there aren't actually 100% offset. Depending on your personal circumstance depends if offset or redraw is better for you. Talk to your bank / broker about the difference and also talk to a financial planner / broker / accountant about future use of the property and the best structure now. You might be best to have an I/O loan with an offset so you can gain the maximum tax benifiets later. Re: Is it worth having redraw on the Home Loan? 16Apr 09, 2010 3:36 pm We have redraw on our loan and use it very differently to what everyone else has said so far. We transfer our pays to the loan (so it builds up the redraw). We purchase everything with credit card and once a month pay off the full amount owing on the credit card (not just the minimum repayment). I have also set up scheduling in netbank to transfer money from the redraw to our savings account to pay the fortnightly repayments. The only drawback I note is the minimum transfer is $500. I am never charged for redraws. Built The Huntley 290 with HomeXcellance / Cheviot Homes Re: Is it worth having redraw on the Home Loan? 17Apr 09, 2010 5:03 pm Fredstar, that sounds more like a line of credit loan. We were offerred one of those but declined - I like to see my mortgage separate and haveing my money in separate accounts - ie mortgage, saveings, everyday use - works better for me. I know line of credit loans can work well for some people (yourself included) but I think many people have difficulty with them. Likewise Glenglen, I know concentrating on paying off my mortgage works for me - I dont think I would have the same discipline doing it the way you suggest, just in case of the unlikely event it is later a rented property. At the same time, I have the security of being able to redraw the money if I need to. Re: Is it worth having redraw on the Home Loan? 18Apr 13, 2010 9:10 pm We have both redraw and a MISA (mortgage interest saver account). We have funds in our MISA that we don't intend on touching such as money put away for our kids schooling but we use our redraw similar to what BennyJ mentioned. I add up all our large bills for the year such as rates, regos, insurances, electricity and divide them by 26. This is the amount we pay in addition to our home loan repayments each fortnight. I keep my own little record of how much "bills money" we have put aside on our loan and when a bill comes in that is covered by those funds we draw that amount out. This way we have the money saved for the bill and instead of earning crappy interest in a savings account we are saving some interest on our home loan. Our minimum redraw is $500 so if a bill is say $350 I just redraw $500 and then deposit the $150 straight back in. Re: Is it worth having redraw on the Home Loan? 19Jun 16, 2010 12:07 pm I have redraw. I will funnel as much money into my loan, and once i am ready to build/buy another house in a year or 2 years time, i will redraw all additional repayments to my new residence. this will increase my interest payments for my previous house (which has now become an investment property), and i will tax deduct this interest. This will be my approach, not sure how good it is though. anyone got any advice/insight? Re: Is it worth having redraw on the Home Loan? 20Jun 16, 2010 3:32 pm lplau, We did a similar thing, however with an offset account. We bought our current house with an offset account on our mortgage and paid minimum payments to the loan. This meant that the loan value did not go down too much, however our offset and savings went up meaning that our interest was reduced. We are now in the position where we are going to rent out our current house once our new house is built and we can convert the loan into interest only and the interest payment become fully tax deductible. View our blog at: http://room4acubby.blogspot.com/ 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 19097 traditional gable roof facade - Have you did the dark and light gray color combination in facade with gray stone in facade… 0 4211 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35326 |