Revolving Credit Facility vs Offset Loan - Which Is Better For You?

[@fcflee74]

At your video 2:37, you highlight that "any extra dollar you put into the revolving credit goes toward the principal." Could you clarify this, please? Assuming, I have 80k (fixed deposit), and 20k Revolving Credit. And, if I have 30k in the revolving credit, how it reduce my principal? A Banker explained that RC is like a Credit Card; I have a credit of 20k, and if I don't use it, I don't get charged, and if I put in 10k into that Credit Card, nothing happens. It keeps my principal the same. Can you explain more in detail? If you put in more than the RC sum, what happens?

[@mortgagehq]

Hi it would be best to chat with your mortgage adviser! If you don't have one, check out mhq.co.nz - it's free 😄

[@drnathchilukuri1]

Hi Blandon, Great video. One question,Is it possible to pay off the revolving credit (savings) in to the fixed mortgage during the term and draw some more of fixed mortgage into revolving credit facility or wait till the termination of fixed term? Hope you can understand what I meant. Thank you

[@mortgagehq]

yes can be done.

[@micah1754]

My understanding was that you have to wait for refix time otherwise you’d need to pay break fees?

[@akuapiatas]

we have $100k left on our mortgage with $680k equity - we have $100k savings and are wanting to buy a 2nd property to help our daughter with a first home for her. Should we pay the 1st mortgage off plus interest for early discharge or should we use the equity to buy the 2nd and then get her (daughter) to pay it off.

[@mortgagehq]

Best to speak to an adviser. email [e-mail]

[@deathbymyside]

FIRST!!

[@mortgagehq]

Yeaaaa boiiii! :P