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Superannuation, Liebig factors, the housing bubble and a soft landing : Comments
By Cameron Leckie, published 5/5/2010We have designed a financial system that must grow or it will implode. Was the GFC the first of a series of tremors signalling the onset of that implosion?
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But I'm not sure I understand the key bit:
"Most banks these days offer offset accounts for mortgages, where any balance effectively reduces the principal of the loan and hence interest payments. We should be able to use our superannuation in a similar fashion, with the option of using both our employee and employer benefits, where possible, as an offset to the mortgage balance."
"In a similar fashion". Do you mean, in effect, depositing (some) super in an offset account? So the role of that money would be to reduce mortgage interest? In that role it would effectively earn the rate of mortgage interest.
If you default on the mortgage, would the bank keep the offset, i.e. your super?