When it comes to your home loan, you’ve probably heard about offset accounts and redraw facilities. Both can help you save interest and pay off your loan faster but which one is better?
As a mortgage broker, I get this question all the time, especially from people juggling investment loans and their own home loan.
Let’s break it down.
What is an Offset Account?
An offset account is a separate transaction/savings account linked to your home loan. Every dollar in this account reduces the balance on which you pay interest.
For example:
You can access the money anytime with a card or transfer just like a normal bank account.
What is a Redraw Facility?
A redraw facility lets you make extra payments on your mortgage then withdraw or “redraw” those extra funds later if needed
For example:
It’s still your money, but access can take longer and sometimes your bank may limit how much or how often you can redraw.
Which Saves You More?
It’s a tie. Both save you the same amount of interest — it’s just about flexibility.
Simple Example
Sarah's Situation:
Option 1 - Offset Account:
Option 2 - Redraw Facility:
The Result: Both save Sarah exactly $3,250 per year in interest.
The Bottom Line
Both options are smart ways to reduce interest. If you like easy access to your funds, go with an offset account. If you want to lock your money away and stay disciplined, a redraw facility might be the way to go.
Speak to a mortgage broker to find out which setup works best for your goals.
Buying a car is exciting, but choosing how to finance it can be confusing. Theres usually 2 options: taking the dealership’s finance package or arranging a car loan elsewhere (through a bank or broker). While both can get you into the driver’s seat, knowing the differences are important.
1. Interest rates and “special” offers
2. Flexibility and features
3. Balloon payments and hidden traps
4. Negotiating power at the dealership
Final Thoughts
Dealership finance can be convenient, but it often comes with restrictions and hidden costs. Car loans through a broker or bank gives you more choice, flexibility, and control and often work out cheaper in the long run.
If you’re unsure which option is right for you, we can help compare offers, explain the fine print, and find a car loan that fits your budget.
If you’ve got a home loan, you’ve probably wondered how to pay it off faster without completely cutting back on life’s pleasures. With a few smart moves, you can shave years off your mortgage and keep more of your hard-earned cash in your pocket.
As a mortgage broker, I see every day how small changes can make a big difference. Here’s how to get started:
1. Make Fortnightly or Weekly Repayments
Most lenders set repayments monthly, but switching to fortnightly or weekly payments means you end up paying the equivalent of one extra month each year. This chips away at your balance and reduces the interest on your home loan.
2. Put Extra Money Towards Your Loan
Any extra payment, no matter what size, can help you pay off your home loan sooner. Tax refund, work bonus, or rental income from an investment loan. Put it straight into your mortgage. Over time, these small boosts cut down the interest and shorten your loan term.
3. Use an Offset Account
If your home loan or investment loan offers an offset account, use it. Money in the offset reduces the balance you’re charged interest on. For example, $20,000 in your offset on a $500,000 loan means you only pay interest on $480,000.
4. Round Up Your Repayments
If your repayment is $2,346 a month, round it up to $2,400 or even $2,500. You won’t feel much difference but the extra amount goes straight to the principal, helping you pay your mortgage faster.
5. Review Your Interest Rate Regularly
Lenders often give better rates to new customers than to existing ones. A mortgage broker can review your home loan or investment loan every 6–12 months to see if your interest rate is still competitive. Even a 0.25% drop could save you thousands.
6. Shorten Your Loan Term
If you can afford it, consider switching from a 30-year loan to a 25-year or 20-year term. Higher repayments mean you’ll clear the loan sooner and save a huge amount in interest.
7. Protect Your Redraw Facility
If your loan has a redraw option, try to leave it untouched unless you really need it. Every dollar you take out slows down your progress.
Final Tip: Get Professional Help
If you’re not sure which strategy is best for your situation, a good mortgage broker can help you compare home loans and investment loans from multiple lenders, negotiate better rates, and set up features like offset accounts and redraw facilities to suit your goals.
Getting your home loan approved feels like a huge win—and it is. You’ve found the right place, secured the finance, and you’re ready to settle. But here’s the bit that often gets overlooked: What happens next?
For us, it’s not just about getting you to the finish line of settlement. It’s about what comes after that. That’s where post-approval support steps in—and it’s something we take seriously.
So, What Is Post-Approval Support Anyway?
It’s pretty simple: we don’t vanish after the paperwork is done. We’re still here, keeping an eye on things and helping you manage your loan as life changes. That includes:
The mortgage world moves fast these days. Rates shift, lender rules change, and new loan options pop up all the time. Having someone in your corner who’s across it all? That’s not just helpful—it’s essential.
Why Ongoing Support Actually Saves You (Big Time)
How to Know If a Broker Has Your Back
Don’t be afraid to ask: “What happens after settlement?” The best brokers will have a clear answer. Look out for things like:
Wrapping It Up
Your home loan journey doesn’t end when you get approved. It’s just the beginning. And having a broker who’s there for the long haul? That’s how you turn a good loan into a great one.
So whether you’re with a broker now or still looking, make sure post-approval support is part of the package. It could make all the difference—in both peace of mind and your bottom line.
Whether you’re planning a holiday, consolidating debt, or covering a big expense, a personal loan can help you reach your financial goals. But with so many options available, how do you know which loan is right for you?
Here’s a simple guide to help Australians choose the right personal loan with confidence.
1. Understand Why You Need the Loan
Before you borrow, clearly define your purpose. Are you looking to:
Some lenders may not lend based on your purpose.
2. Compare Interest Rates
Personal loans come with fixed or variable interest rates:
Make sure you compare the comparison rate, which includes the interest rate plus most fees, giving you a clearer picture of the loan’s true cost.
3. Check Fees and Charges
Some personal loans come with:
Read the fine print to avoid nasty surprises down the track.
4. Look at Loan Features
Some lenders offer handy features like:
These features can help you pay off your loan sooner and save on interest.
5. Know Your Credit Score
Lenders assess your credit report when deciding whether to approve your loan and at what interest rate. A better credit score can mean access to lower rates. You can check your credit score for free through providers like Equifax, Experian, or illion. Some lenders do not lend if you do not have a credit score.
6. Speak to a mortgage broker
A mortgage broker can help you compare different lenders and loan options based on your individual situation. They’ll consider your goals, income, credit score, and lifestyle to match you with the right loan.
In a world full of subscriptions—streaming services, fitness apps, meal kits—it’s easy to lose track of where your money is going. But what if cancelling just one unused subscription could give your savings a healthy boost? Whether you're saving for your first home, planning to refinance, or working with a mortgage broker to explore your lending options, every dollar counts.
Why It Matters
Subscriptions are often set-and-forget expenses. You sign up, use them for a while, and then they quietly chip away at your bank account month after month. That $15 or $30 per month might not seem like much—but over a year, it adds up to $180 or more. Redirecting that money into savings can fast-track your borrowing goals, especially if you're preparing to apply for home loans.
Step 1: Audit Your Subscriptions
Take five minutes to check your bank statement or app store history. Identify subscriptions you no longer use or rarely touch. Common culprits include:
Step 2: Cancel One (or More)
Choose just one to start with. The idea isn’t to strip away all your enjoyment—it’s to become more intentional with your spending.
Step 3: Redirect the Savings
Now, here’s the trick: Don’t let that money disappear into everyday spending. Set up an automatic transfer for the same amount into a dedicated savings account. This could be your home deposit fund, emergency savings, or even a mortgage offset account to reduce interest if you're already paying off a home loan.
Real Impact Over Time
Let’s say you cancel a $25/month subscription and save that amount consistently:
Final Thoughts
Building wealth and improving your financial health doesn’t always require drastic changes. Sometimes, it's the simple things—like cancelling a single subscription—that can make a big difference.
What is the biggest wealth killer in life?
It’s not bad luck. It’s not taxes. It’s not even a lack of investing.
The biggest wealth killer in life is – “Keeping up with the Joneses”.
What Is “Keeping up with the Joneses”?
Keeping up with the Joneses happens when your expenses increase in line with your income. Each time you earn more—whether it's through a pay rise, bonus, or career upgrade—you start spending more. You move to a nicer home, drive a flashier car, upgrade your wardrobe, and dine out more often.
Suddenly, the extra income that could have gone towards building long-term wealth disappears into day-to-day spending. Over time, this can leave you stuck in a cycle of high earnings and high expenses, with little or no wealth to show for it.
If your spending always rises with your income, you will never build true financial freedom.
How “Keeping up with the Joneses” Destroys Wealth
Build Wealth That Lasts
If you want to build lasting financial freedom, resist the urge to upgrade every time your income does. Instead, stay focused on your long-term goals. Save consistently.
Retirement should be a time to enjoy a comfortable lifestyle. However, many retirees look back with regret, wishing they had made better financial and lifestyle choices. With early planning and guidance from a professional like a financial adviser or mortgage broker, you can avoid the most common retirement mistakes.
Below are the top four retirement regrets and practical ways to avoid them.
One of the biggest regrets retirees have is not saving enough to sustain their desired lifestyle. Many underestimate how much they will need to cover expenses like insurances, health, travel, and daily living costs.
While early retirement sounds appealing, some retirees find they miss the structure of work. On the flip side, those who work too long often regret not enjoying their wealth while still in good health.
Many retirees regret not making smarter financial decisions, particularly when it comes to passive income streams.
Many retirees regret not planning how they will spend their time, leading to boredom and even depression.
Retirement should be a time of relaxation and enjoyment—not regret. Working with a financial adviser or mortgage broker, you can ensure that your savings, investment properties, and superannuation provide a stable and stress-free retirement. The key is early planning and making smart financial decisions.
If you want to grow your wealth instead of spending time watching Netflix, here are three productive actions you can take:
1. Invest in Your Financial Education
Instead of watching another episode, spend time learning about money management, investing, and wealth-building strategies. Some ways to do this include:
2. Start a Side Hustle or Passive Income Stream
Instead of passively consuming content, use that time to build an extra income stream:
3. Optimise Your Investments and Finances
Use your free time to actively manage and improve your financial situation:
Each of these steps brings you closer to financial freedom—way more rewarding than a Netflix binge!
The Christmas is a time of joy, family, and indulgence, but it’s no secret that it can also take a toll on your wallet. Many people feel the pinch after overspending on gifts, travel, and festive celebrations. But don’t worry – with a little planning and some smart strategies, you can recover and and bounce back financially.
Here are some actionable tips to help you navigate your post-Christmas financial recovery:
1. Take Stock of Your Financial Situation
The first step in post-Christmas financial recovery is understanding where you stand. Gather all your bills, bank statements, and credit card balances. Create a clear picture of your current financial position. Yes, it might feel daunting, but it’s essential to know what you’re working with.
2. Create a Budget That Works for You
Budgeting is your best friend when recovering from holiday overspending. Look at your income and fixed expenses, then allocate what’s left toward paying down debt and essential costs.
3. Prioritise Paying Down Debt
If you used credit cards or "buy now, pay later" services during the holiday season, tackle those balances as a priority. Start with high-interest debt, as it’s the most expensive to carry over time.
4. Cut Back on Non-Essential Spending
January is the perfect time for a financial detox. Review your spending habits and identify areas where you can cut back. Cancel unused subscriptions, reduce dining out, and focus on home-cooked meals.
5. Embrace a Frugal Lifestyle
Frugality doesn’t mean deprivation; it’s about making smarter financial choices. Shop second-hand, hunt for deals, and adopt habits that prioritise value over cost.
6. Stay Motivated
Financial recovery takes time, but consistency is key. Track your progress, celebrate small wins, and remember why you’re working to improve your financial health.
Conclusion: Take Control of Your Money
Post-Christmas financial recovery doesn’t have to be stressful. By assessing your finances, creating a budget, and adopting healthier money habits, you can bounce back stronger. Remember, every small step you take towards better financial management brings you closer to your goals.
