In particular we focus on getting the loan structure right the first time, choosing which lenders to use in the right order (yes this is important) and finally getting our clients the best deal possible.
Offset Account
Offset accounts are a specialized type of bank account linked to a mortgage that operates like a transaction or savings account. They help you save interest on your home loan.
The balance in your offset will go against the amount you own on loan, so the interest you pay will be calculated on the reduced amount.
For example, if you have a $200,000 home loan and you have $20,000 in your offset account, then your only paying interest on $180,000.
They effectively reduce the interest costs of a mortgage without requiring extra payments towards the principal and because of this you could potentially pay your mortgage off faster. As they are like a transaction account, they also allow the borrower access to the funds at any time.
Offset accounts can be used in a positive way to reduce the amount of interest you pay on your home loan. Basically, the more money you have sitting in your offset account the more you can save over the life of your loan as your only paying interest of the difference between your home loan balance and the amount sitting in your offset.
Learn MoreA mortgage with an offset account may have a higher interest rate than a mortgage without it. Some lenders may also charge a monthly account-keeping fee. Some lenders might also charge you each time you withdraw money from the account.
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