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Is there any benefit if the bank direclty takes out monthly repayments for my mortgage from my offset account instead of savings account ? (aussie.zone)

submitted 5 months ago by [email protected] to c/[email protected]

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[–] [email protected] 1 points 4 months ago (1 children)

No, noting about our system is to be admired.

You have socalised mortgages through Fannie and Freddie and can budget knowing rates will be locked for decades because that's how they operate your banks have to do the same.

We have shitty WAY overpriced housing, some of the most expensive in the world in a small country (gazillons of acres but not many people) at the bottom of the planet ffs, we have poorly built housing stock with poor building codes (thin walls and slap giant HVACS on the side with no though to effiency) and cost a fortune to run

We only have privates mortgages with nearly all floating rates, we have a mostly protected cartel of lenders, the so called Big 4.

All our mortgages are full recourse, banks can persue you in perpetuity if u get I to trouble.

And 100s of other terrible things..

[–] [email protected] 1 points 4 months ago

I hear ya, I know Canadian mortgage terms are renegotiated every couple years and that always sounded awful.

I was watching EEVBlog one day and Dave mentioned the offset account and I looked it up. That may be the only good part of your system. Here in America, the closest thing to that is a Home Equity Line of Credit, which is essentially a second mortgage but with not-so-good rates.