Reduce the interest you pay on your home loan.
Usually your monthly loan repayment pays part interest and part capital on the loan. When you have a mortgage offset account, the balance is deducted from the loan so that the amount of interest you pay each month is less. If your mortgage repayment stays the same, you are therefore paying more off the capital of the loan, reducing it quicker.
If you for example had a home loan of $500,000 over 30 years at 5.54% without an offset account, using the loan repayment calculator you would pay $526,542 in interest over the life of your loan.
However if you had the same home loan with a mortgage offset account containing a balance of $25,000 for the life of the loan using the home loan offset calculator,
you would only have to pay $469,542.30 in interest. What’s more, the additional money coming off your home loan balance would pay the loan off in 27 years and 3 months!
This represents a saving of $56,990.70 plus two years and three months on the term. Obviously, the more money you have in your offset account, the more you will save and the quicker you will pay off your loan. What’s more, your mortgage offset account will give you the additional flexibility of having money on hand if you need it.
How do I find the right loan with the right offset account? With interest rates currently at historical lows, many lenders are offering great mortgage offset accounts to make their loan products more attractive. There are literally hundreds of loan products on the market, tailored to a variety of different uses. You can get loans with mortgage offset accounts for regular home loans, property investment loans and even for construction and renovation purposes.
We can help you access to a wide variety of lenders doing all the leg work to find you the right product for your particular needs and personal financial circumstances. If you want to know more simply contact us .