VIDEO – A loan re-draw and an offset – the same but different

VIDEO – A loan re-draw and an offset – the same but different

Transcript:

A loan re-draw is when you have pre-paid money into your loan and you have the ability to re-draw that amount.  It is like repayments in advance of what you need.  An offset account, on the other hand, is a second account that attaches itself to your loan.  Whatever money is sitting in that, is cash and it off-sets against your loan.  They might sound the same but Andrew Mirams explains the fundamental differences.

 

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Andrew Mirams
andrew@realestatetalk.com.au

Andrew’s expertise covers all aspects of lending, in particular he understands the special lending requirements faced by both self employed customers and property investors. It is a testament to Andrew and his team that a large amount of his business comes from repeat customers and their family and friends.Outside of work, Andrew enjoys playing golf, watching and coaching football and spending time with his family.

1Comment
  • MIKE HARRISON
    Posted at 19:45h, 19 November Reply

    Thank you for the Pod Cast.

    When I made a re draw from my home loan I had payed $8,500 extra in payments so my re draw capability was $8,500.

    How ever when I made the re draw a month later on my statement they had increased the normal weekly loan re payment from something like $420.00 per week to $455.00 which was a shock at the time.

    So I rang them and asked why, as all I did was take back the extra payments on top of the normal payments as I thought the Re Draw was designed to do. They explained that because I made a Re Draw for some reason they had to increase the normal re payments I had been making for years to compensate for the loss of the $8,500 I had taken out.

    Can you please check this out to confirm this is correct. As this is a very important point.

    Thank you,

    Mike..

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