I have a home loan with Westpac and we have some extra money in the loan as well as money in an offset account. I am worried about our ability to save, we seem to always be dipping into the offset, so I was wondering if I could pay extra money into the loan, then reduce the loan limit so it wouldn't be sitting there for us to access.
Does anyone else do this? How often can you do it? What is a reasonable amount?
If I reduced the home loan by $1000 each month, then called the bank to reduce the limit, would they get annoyed?