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Offset Account Spreadsheet

Offset Account Spreadsheet

  1. HHH

    HHH Active Member

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    Queensland
    HHH submitted a new resource:

    Offset Account Spreadsheet - Offset Account Spreadsheet

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    Last edited by a moderator: 15th Sep, 2016
  2. HHH

    HHH Active Member

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    Queensland
    **bump** ?


    Another question.

    We have some money sitting in an offset account against our PPOR. Would there be any advantage to actually using that cash to make a capital reduction on our PPOR loan. Again, how do we go about doing the sums to see if we would be better off doing this as opposed to just leaving it in the offset account.

    One advantage would be the extra cash flow from the reduced repayments, but just trying to work out if the overall net affect would be any different?
     
  3. Glebe

    Glebe Well-Known Member

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    If it's 100% offset, I can't see any difference.

    Perhaps reducing the mortgage improves your servicability in banks eyes?
     
  4. handyandy

    handyandy Well-Known Member

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    Location:
    Sydney Nsw
    As Glebe says at 100% offset, there would be no difference.

    One reason you don't pay down the PPOR directly is that you want the maximum loan balance if you are ever to change it to an IP. By keeping the money in the offset you can withdraw it at the point of changeover without effecting the deductability status of the outstanding loan.

    At the simplest level unless you have redraw facilities you will loose access to any money payed into the PPOR loan.

    CHeers
     
  5. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    The question is - are we talking an IO loan or a P&I loan ?
     
  6. HHH

    HHH Active Member

    Joined:
    5th Oct, 2005
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    Location:
    Queensland
    Loan is P&I.

    Glebe, good point regarding servicability.


    thanks for the replies.