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  1. #1
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    Default How do you get out of an offset mortgage?

    We have an offset mortgage with credit card, I need to get rid of the credit card as it's not going to work for the budget moving forwards.

    Will I have to totally refinance in order to get rid of the credit card or Can I pay out the credit card, cancel the account and continue to pay the mortgage payments from my weekly pay?

    Anyone have any experience or know the answer please

  2. #2
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    We have a credit card attached to our offset- its part of a "package" with annual fee.
    We paid out the credit card some time ago, and cut up the cards. Have not used it in about 2 years.
    We still pay the package fee, which gives us a discount and the offset accounts. We also technically still have the credit card, but it has a zero balance and no physical card.
    If you just want to pay off the credit card, there should be no need to refinance. But read your fine print in case there's some catch in there.

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  4. #3
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    We have a credit card attached to our offset account but we never use it.

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    Also, an offset is a good thing imo. Why would you want to get rid of it?

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  8. #5
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    This really is a question for your bank but I can let you know that an Offset is just a type of loan and usually you can “product swap” to a different type potentially with a cheaper rate or lesser annual fee. The other option is that you just payout your credit card and close it and pay your normal mortgage repayments.
    Either way definitely call your bank first so they can make sure that you are on the best loan for your situation going forward. Either option shouldn’t entail an application, just a form to change it at worst. Good luck

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    I’ve got an offset on my mortgage. Best thing ever I actually pay zero interest on mortgage so every fortnight what I pay comes off

    If you want to keep the offset and not the CC. Pay the cc out cut it up and don’t use it.

    By Reverting to a mortgage without an offset you’ll be paying a tonne of interest making your mortgage higher once you’ve eventually paid it off and making the bank even richer then what they are now

    You’ll also have fees which will make you . I know when I first had my mortgage by myself interest rates where 9.5% within 18months they had dropped to 6% it cost me $14,500 to get out of that mortgage of $180k

  10. #7
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    Just ask your bank if ypu can remove the credit card. It's probably just an optional extra.

  11. #8
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    Have an offset account your pay goes into (your pay doesn’t go into your credit card does it? That would be weird) then you can use your credit card to maximise the amount of money that’s in your offset account and then you’ll pay less interest.

    So your credit card should be set up for automatic repayments so you never pay interest on it (because you have a 55day interest free period). You always want the maximum amount in your offset, so say you have $1000 owing on your credit card, but that $1000 is sitting in your offset. You’re not paying interest on that $1000, it’s money that’s working for you. If you don’t have the credit card, that money isn’t working for you. Credit cards are great when used appropriately. We have about $5k owing but it doesn’t bother me at all, because that money is in our offset working for us. Plus we get Coles cards in the awards program so some free groceries.

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    Ring the bank and ask them what your options are.


 

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