Home loans with linked Visa debit cards
With so many different possibilities for taking out a home loan and the large number of product options available, you should fully explore what will be most appropriate for your financial circumstances. One product you may want to consider is a home loan with a linked Visa debit card. This provides extra convenience when you need to use some of the money you have in an offset account.
What are home loans with linked Visa debit cards?
To access home loans with linked visa debit cards you will need to have an offset account. This can then be linked to your Visa debit card so you have the convenience of spending some money from that account when needed. An offset account contains funds that substitute for part of the principal sum you have borrowed, and it can be accessed for drawdown without necessarily linking it with a visa debit card. It comes down to how you want to access the funds in your offset account and how quickly you want that access. The advantage of an offset account is that the amount of interest you pay on your loan amount will be reduced, although you should always check the interest rate you are paying, and consider whether it is likely to go up or down if you choose a variable rate.
How do home loans with linked visa debit cards compare to other products?
This type of loan requires you to have an offset account, and if you don't have the money to put into such an account you'll need to examine other options. The main point about home loans with offset accounts is the potential for saving a considerable amount of interest on whatever sum you have borrowed. Add in the linkage to a visa debit card and you could give yourself additional control over the account funds and how to access some of the money if you need to.
What are the main features of home loans with linked Visa debit cards?
Keeping control of your money is a major feature of home loans with linked Visa debit cards. You could also save a considerable amount of interest on your home loan by using this product, however, bear in mind that to see that advantage you must be disciplined in your spending.
Are there risks to consider?
If you decide to go for a home loan with a linked Visa debit card you need to keep a watchful eye on your expenditure. Each time you take money from your offset account you will be reducing the amount that is offset against your principal loan, so your daily interest rate will increase. It's not a problem as long as you keep control and, where you can, replenish the funds so you don't continue to pay additional interest. Remember too that as with any home loan you should always keep up with your monthly repayments or you could, in a worst case scenario, be in danger of your home being repossessed.