Hi all,
Nowhere near the end of my home loan but running a hypothetical here. If the loan lets say is $500k and i've got $500k in the offset, obviously fully offset and no interest to pay. But what happens then? Do i just leave the facility open and pay the annual fee so that I have a $500k credit line until you build up enough of a savings buffer? And then what, pay off the account.
Thanks!
Yes, would basically be an open line of credit if you don't pay it off. That said, don't keep $500k in an offset account, a loan against your home is one of the cheapest forms of debt you'll ever get. Put the money into a fund, ETF or the like so that you can leverage your returns whilst you still have the loan. Or use it as a deposit for another property…etc.