With interest rates are higher everywhere in Australia however you have to shop this around as there is a big difference between lenders (if you have a mortgage broker let them do it for you)
Even if you are starting out please make sure you get a broker to do the leg work for you it costs you zip.
If you are thinking about re financing again think about shopping it around through a broker.
OFFSET ACCOUNT
I dont believe enough people have given this any thought but basically this is how it works:
The money in your offset account is offset against the home loan. This means the buyer pays interest on the difference only. (loan compared to the offset)
For an example if your home loan is $500,000andthere's $400,000 in your offest account the interest will be paid on $100,000 only.
Your offset account remains accessible though think it like a savings account.
MAKING EXTRA PAYMENTS
Usually, buters with a variable rate home loan can and should be making extra repayments where ever they can.
For example if you paid $2,000 a month it would be a total of $24,000 a year however if if you paid $1,000 fortnightly it would end up being a total of $26,000. (me I have changed to weekly and have money sitting in my offset account)
Whatever you do home loan packages offer a variety of benefits. These may include lower interest rates, fee-free credit cards and extra offset accounts. PLEASE READ THE FINE PRINT.
The most important thing depending on where you are in your buying journey at the start or near the end you definitely need to GET GOOD ADVICE.
MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!
SELLING MOSMAN PARK & THE WESTERN SUBURBS!!
KEEPING IT REAL IS OUR MOTTO!!
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