Using Offset Accounts To Save Thousands

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The smart use of Offset Accounts could literally save you thousands off your mortgage and allow you to own your home sooner.

An offset account is a savings account or transaction account linked to your home loan account. The account balance is ‘offset’ daily against your home loan balance, and as a result you’re only charged interest on the difference between the two.

It reduces interest payable and can help you pay off your mortgage faster.

Usually your home loan interest is worked out each day, calculated on the balance of your loan and then charged monthly. Every dollar you have in your linked offset account helps reduce the “interest component” charged and in turn reduces down the loan term.
Note: If the loan is P&I your loan term will reduce down and your repayments remain the same each month but If your loan is Interest Only the actual monthly repayments reduce down.

To make the best use of an Offset Account, have all your income go into your offset account and then pay any expenses out only on their due date.

You want to keep as much money for as long as possible in your offset account as the balance then links to your mortgage reducing the amount of interest you pay.

What could this mean for you in real terms?
If you have an Offset Account that can maintain a balance of say $20,000 that is linked to a $500,000 mortgage with a 30 year term you can save around $43,000 over the life of the loan and own the property 1.5 years earlier!

The best advice is to be aware and informed of what is available and if it’s right for you.
It could save you thousands!

If you need more personalised information on your situation Call Me on 1300 INK 000 (1300 465 000).

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The information provided on this website has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of an Ink Wealth Pty Ltd advisor before you make any decision regarding any products mentioned in this communication. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither Ink Wealth Pty Ltd nor its related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.

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Katherine Therese Euers is a Credit Representative (497712) of Vow Financial Pty Ltd, ABN/ACN 66 138 789 161, Australian Credit Licence 390261