Wealth Adviser Articles

Select a category:

Important loan features to understand

Redraw After making payments for a time, you can take back (re-draw) some of the money you have paid off your loan. The balance of the loan increases again, and either your term extends or your repayments increase, but you have access to cash. This is helpful if you encounter unexpected major expenses, or want to extend or improve your home. Offset Some lenders will offset the interest on your savings account against your loan interest. For example, you have a $250,000 loan at 8%, and $50,000 in a savings account. Instead of earning less than 5% interest on your savings (taxed at 30%), you pay loan intere...