The Right Home Loan

Understanding loan offset accounts in Sydney

100% offset accounts, linked to your loan accounts, are a great way to pay off your loan quicker. The account permits access to a chequebook or debit card as well as granting the Internet and telephone access; all facilitating your pursuit in utilising the best mortgage possible. How will you know that you have the best mortgage possible? It's simple. Our Sydney experts know the ins and outs of loans, helping you make the right choice for your situation.

HOW DOES THE 100% OFFSET ACCOUNT WORK AND WHAT ARE THE BENEFITS?

Interest on a home loan is accrued daily and charged monthly in arrears. To get the most out of your 100% offset account, deposit your entire salary into it then use it for all of your daily expenses. For example, if you had a loan of $350,000 and you had $50,000 in your offset account, your lender only charges interest on $300,000. Your monthly repayment won’t change, but you’ll be paying off a greater proportion of principal than without the offset account. The accumulated amount is offset against the loan balance that remains, meaning an early payoff and freedom from loan obligations. Offset accounts are generally set up with variable rate professional packaged loans.

ADDITIONAL BENEFITS

With offset accounts, interest is charged daily and the savings balance is subtracted from the outstanding loan balance. We recommend committing all income to the offset account, deducting from the net balance applicable to interest. This is a convenient and easy way to save large amounts of money in mortgage interest while allowing for flexibility in repayments.