Nearly paid the house off, should I keep the bond going?

biometrics

Well-Known Member
Joined
Oct 17, 2019
Messages
20,267
As the title says. I've read in the past there are advantages to not fully paying the bond and keep it going at a very low balance.

Is that so? What are the advantages?
 

Johnatan56

Well-Known Member
Joined
Jun 22, 2020
Messages
1,530
Location
Vienna
Cheap access to credit if you want to take money out, for example buying a car.

Rules changed in the past few years regarding tax and stuff, chat to an accountant.
 

SauRoN

Active Member
Joined
May 2, 2020
Messages
486
It’s never really made much sense to me unless you see yourself needing more credit again in the near future.

Many people leave it open because they’ve been told this, burning the service fee every month and then they never actually use it so it just cost them money all the way.

If you plan to buy a new car in the near future or something like that which you would have financed anyway then it can make some sense especially if the interest rate is quite low and you aren’t likely to get better.


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