FAQ 56 What should I consider when using an offset account

The following is applicable to offset accounts set against personal debt ( PPR loans)

The major consideration is the future use of the funds held in the offset account.

If the future use is PRIVATE then retain the funds in the account for future PRIVATE use.

if the future use is INVESTMENT then use the funds to reduce the debt on the loan that is being offset  then arrange to draw on the increased equity position using either a Line of Credit or separate redraw for future INVESTMENT use.

If the offset account is set against investment debt then using the funds from this account will increase the interest payable.

Regards

Michael & Sara

Ultimate Coaches