Archives for April 2023

  Both redraw facilities and 100% offset accounts can help to reduce the interest incurred on your loan, but they work in different ways. Let’s take a closer look to see which option might be appropriate for you.   What is redraw and how does it work? A redraw facility allows you to make additional payments into your home loan, and then access these funds should you wish to take them out of the loan at some point later in the future. For example, just say you received … [Read more...]

We’ve spoken to a few clients recently who have received phone calls from their lender. It all starts out innocently enough.  ‘Lenny’ wants to know if you’re happy with your current loan.  He wants to know if things are all ticking along as they should.  And he wants to know if there is anything he can help you with. The next thing you know, you’ve been locked into a fixed rate loan you weren’t sure you actually wanted or you’ve somehow agreed to increase your credit card limit. We don’t … [Read more...]

There are two kinds of debt in this world: the kind that is tax deductible and the kind that isn't. Knowing the difference and how to structure your finances accordingly, can significantly improve your cashflow, opportunities and overall financial position. So what makes debt tax deductible or not?   Non-tax deductible debt Let's start by clarifying that we're talking about whether the interest on a debt is tax deductible. A non-tax deductible debt (also known as 'bad debt') … [Read more...]