Home loans 'a winner for everone'
With the Reserve Bank of Australia (RBA) pushing mortgage interest rates to historic lows, there has never been a better time to grab yourself a low-interest home loan, the Sydney Morning Herald reports.
Personal finance expert David Potts writes that with interest rates currently lower than anybody can remember, a new home loan "could be your new best friend".
"Used positively your mortgage could, perversely, boost your wealth as the most tax-effective form of saving outside super," he explains, adding that with the stock market on a decidedly shaky footing, getting hold of a new low-interest home loan may prove even more attractive.
However, he advises that for those who do make the plunge, it’s important to opt for a home loan which offers a redraw or offset facility.
Although this type of home loan, which also provides a savings account that you can pay your salary into, will be a little more expensive, there are some strong tax incentives for getting hold of an offset.
His comments are echoed by fellow mortgage expert Robert Projeski, who has advised Business Day readers that an offset facility is an essential part of any home loan plan.