fbpx

Weighing up redraw v offset accounts: Which is better? – The New Daily

Weighing up redraw v offset accounts: Which is better? – The New Daily

Hugh recently chatted with Matt Johnson of The New Daily to weigh in on the redraw v offset account saga.

Excerpt below

Centaur Financial Services managing director and financial adviser Hugh Robertson said the saga highlighted the low levels of financial literacy around both options.

“If you talk to the majority of people, they would assume they are one and the same,” Mr Robertson told The New Daily.

Although redraw facilities enable home owners to use extra repayments in times of strife, there’s plenty of risk because it’s attached to a mortgage, Mr Robertson said.

“Anyone with debt should try to utilise an offset account if they can and [use it to] pay all of their living [expenses],” Mr Robertson said.

“Offset accounts are the utopia for bank accounts in Australia.”

Mr Robertson said prospective property investors would benefit more from offset accounts, as they reduce a loan’s interest and would allow them to use the extra cash as the deposit for their next home.

Read the full article

Centaur Financial Services

Centaur Financial Services work as your partner, helping you navigate through the financial ups and downs life throws at you. First, it starts with your goals. Then it’s a lifelong commitment to achieving short, medium and long term objectives through a range of financial strategies and structures.

View All Services

The information provided on and made available through this website does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances. Centaur Financial Services do not warrant the accuracy, completeness or currency of the information provided on and made available through this website. Past performance of any product discussed on this website is not indicative of future performance.

Book Contact

Contact Us To Schedule A Complimentary Meeting

Complete the following form and we will be in touch to arrange a Complimentary appointment.