has anyone actually paid their mortgage off quicker by doing this method ( as it put all income in and use redraw when needed)? we are moving back to our other place at the end of the year and this looks like an attractive option to slash years off our home loan. How did you manage? did you use an interest free credit card then pay bill at the end of the period? would it be worth linking one with frequent flyer points? How much did you actually save and is it worth the hassle?
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19-03-2014 01:44 #1
all income into mortgage?
19-03-2014 01:52 #2
Why don't you just set up an offset account and have your income sit in there until you need it? That way you don't have to redraw at all which makes it less of a hassle, and you'll still be making the same savings on interest.
19-03-2014 01:53 #3
Oh this is what I mean thanks should write posts at 2am but this is what keeps me up at night haha
19-03-2014 01:54 #4
Lol I mean shouldn't oops
19-03-2014 01:57 #5
Well that's what we do :-) the offset account is our everyday spending account. Not sure if it saves money because this is the way we've always done it, but any saving is money in my pocket instead of the banks and that has to be a good thing :-)
19-03-2014 07:15 #6
If you don't mind me asking how many years has it shaved off?
19-03-2014 07:42 #7
We don't. I think getting an offset account is an awesome idea. Our current mortgage doesn't offer it but we will be switching to one that does at some stage.
19-03-2014 07:54 #8
Our mortgage has an offset facility. It can take years off your mortgage, but we found we needed to be disciplined to make it work. It can be hard to track your expenses when it all goes on a credit card, and has to be paid off at the end. I guess it worked for us, and our new loan is also an offset mortgage. There was a fair bit of hassle as well, but that was more to do with a bad choice of broker and lender!
19-03-2014 08:40 #9
For those that make it work did you have an idea of expenses beforehand and then get a card with that limit?
19-03-2014 10:54 #10Senior Member
- Join Date
- Apr 2011
Our loan package includes a credit card with no additional fee. Could this be an option for you?
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