November 02, 2022

Luke on 2CC – How to use interest only loans to your advantage

18 minutes

Financial Planner Luke Smith joined 2CC Talking Canberra 1206AM in The Money Show which aired on Friday 28 October 2022. They start the show by talking about ‘World Champagne Day’, it’s apparently a real day. This week’s topic for discussion however is: How and why to use interest only loans? How can they be used to for your advantage?

Key topics covered include:

Firstly, what’s the difference between interest only loan and principal and interest repayments?

The kinds of repayments you make should depend on your goals

Principal and interest repayments will pay of the loan, but so will interest only repayments provided you also use an offset account

Are you a good saver? Why is this an important question when using an interest only loan?

Offset accounts provide you with the ability to save, and the bank reduces the loan by the value of the offset account

What are the benefits of an offset account?

How can a good broker help?

Also be careful – an offset account is not the same as a redraw facility

Finally, Luke shares his top tips around using an interest only loan to help you reach your goals.

https://www.envisionfinancial.com.au/wp-content/uploads/2022/11/The-Strategy-Stacker-Luke-Talks-Money-28102022.mp3

Also available on Apple Podcasts and Spotify ‘The Strategy Stacker – Luke Talks Money’

Do you need advice to help you reach your goals?

How you pay back your loan should fit with your goals. A mortgage is a long-term commitment and you should seek advice if you need help. A mortgage broker can also help you survey the marketplace for a better deal.

Luke as a Financial Planner can help you set up a financial planning strategy to help you achieve your personal financial goals. Make an appointment to confidentially discuss investment, super, insurance and/or retirement planning. Call Envision Financial Services on 6260 4749. You can also use our contact us form to make an appointment for a confidential discussion about your situation.

Luke will return to talk about financial planning on 2CC next Friday. You can also catch up with The Strategy Stacker – Luke Talks Money podcasts on our website too.

We look forward to your company again and sharing more news about the book that’s coming in 2023!

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By Luke Smith