Too many property owners are paying the price for not obtaining independent advice when they arranged the finance for their property purchase.
No matter how informed you are or how good a loan might seem, discuss the loan structure & your options with a property lawyer before committing to the loan.
Tip 08 – How Contingency Funds Help
- The loan account balance is reduced by the amount of contingency funds in the Offset Bank Account, which reduces the monthly interest bill for the loan account.
- If your loan account balance is $400,000 and you have $20,000 of contingency funds in the Offset Account, then interest is only calculated on $380,000.
- The $20,000 is available for you to withdraw if some emergency occurs.
- You do not want to repay the $20,000 off the Loan Account. If you did this, you will not be able to easily access that money should an emergency arise!