A smart home loan that still lets you have a life
Interest rates have never been so low – but higher house prices and the growing cost of necessities can put family budgets under pressure.
Here are six ways to help you spend less time worrying about your budget – and have more time for your family. And with Macquarie Bank’s new home loan package, which is packed with useful digital tools, you can have confidence in how you manage your money.
1. Get smart with offset structures
According to the Reserve Bank, around 17% of our home loan balances are currently held in an offset or redraw account – indicating many homeowners are taking the opportunity to reduce the overall interest on their home loan.
So if you’re using a home loan offset account already, that’s great. You’re reducing your interest payments because they’re calculated against the difference between your outstanding loan balance and the balance in your offset account.
But if you’ve ever been tempted to use money in that offset to pay for a holiday, unexpected tax bill or home repairs, you’re probably not using it to its full budgeting power.
It may be a good idea to have at least two offset accounts, both working hard to reduce your interest payments and the life of your loan. One is for short-term savings – a rainy day fund, fun fund or Christmas fund. The other is for the much longer-term. Squirrel it away and don’t be tempted to use it, so it can do the hard work of reducing interest payments and paying off your loan sooner.