flatpack Posted October 18, 2015 Share Posted October 18, 2015 Hey All I'm looking for some advice with regards to what to do with our savings. Should we pay a load off our mortgage or leave it in our offset account. I've added the figures which are rough amounts, could someone tell me what's the best way to achieve our goal of paying off the mortgage as early as possible. Mortgage repayment (29.5 years left) $379k @4.43% Saving in an offset account $105k Currently overpaying $85 per week No other debt I cannot work out if it is better to leave our savings where they are or pay it off the mortgage. I paid weekly and any money left at the end of the week goes into the offset account, we could probably up our payments by a further $100 a week but is that better than putting the extra in the offset account. The plan is to pay off the loan asap so I can take an easier job as I work extremely hard in a physically demanding job and any advice to achieve this goal sooner would very much appreciated. Quote Link to comment Share on other sites More sharing options...
srh82 Posted October 18, 2015 Share Posted October 18, 2015 I am doing the same for my partner and I: 10 months to go but hefty payments. I'm sure someone qualified to give advice will be along soon....good luck... Quote Link to comment Share on other sites More sharing options...
speakeasy Posted October 18, 2015 Share Posted October 18, 2015 I thought it mattered little whether the money was in an offset or in the loan itself? Depending on how much is fixed or variable I would put as much as you are comfortable not having access to in the loan itself.. as it is money that you will need to pay the bank sooner rather than later. Any interest you earn at these low rates is fruitless but it is a great time to be paying down loans. Quote Link to comment Share on other sites More sharing options...
flatpack Posted October 18, 2015 Author Share Posted October 18, 2015 I thought it mattered little whether the money was in an offset or in the loan itself? Depending on how much is fixed or variable I would put as much as you are comfortable not having access to in the loan itself.. as it is money that you will need to pay the bank sooner rather than later. Any interest you earn at these low rates is fruitless but it is a great time to be paying down loans. The loan is 100% variable. I was under the impression that it shouldn't make a difference where the money is sat but I don't trust banks, they are down there with salesmen in my book! I suppose if it's in the offset at least I can use it if the need arises! Quote Link to comment Share on other sites More sharing options...
Guest Posted October 18, 2015 Share Posted October 18, 2015 You can re finance and get a much better rate and save yourself a lot of money I'm with ING 3.99% variable with offset can get very low 4's with places like Ubank Heritage etc too. Quote Link to comment Share on other sites More sharing options...
Parley Posted October 18, 2015 Share Posted October 18, 2015 It is the same effect whether in an offset or in the loan. An offset account doesn't pay you interest but reduces your interest on the loan account as though your deposit was payed into the loan. So personal preference, I prefer having a loan where all the money can go into the loan account but has a redraw facility so you can get it out if needed. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.