Just like the diverse range of mortgages available, each home loan option comes with its own set of advantages and disadvantages. To navigate this complexity and find the mortgage that best suits your needs, it’s crucial to consult with a knowledgeable expert who understands the market intricacies.

Offset accounts and how they work
An offset account is essentially a transaction account that’s linked to your mortgage. The balance in this account directly offsets your loan, meaning you only pay interest on the difference between your loan balance and the amount in your offset account. For example, if you have a $500,000 mortgage and $50,000 in your offset account, you’ll only pay interest on $450,000.

Therefore you can potentially reduce the amount of interest you’re charged without actually paying the money into the loan itself. Plus, the funds in your offset account remain fully accessible, so you can use them anytime without impacting your mortgage’s overall structure. This flexibility makes it a great option if you want the best of both worlds - saving on interest while having easy access to your money.

An offset account usually has monthly fee, annual fee or a higher interest rate.

For a detailed understanding of how offset accounts work and to explore potential options please get in touch with one of our experienced finance brokers.

Why not take the first step towards securing the right financing for your situation? Schedule a conversation with our experienced and accredited MFAA mortgage brokers today and let us help you explore your options!

Important! Please note all computations are for illustrative purposes and do not constitute advice or a guarantee of a loan approval. Please get in touch with one of our mortgage brokers to find out your borrowing capacity.