Front and centre of saving both money and years off your home loan is having an offset account. The amount held in this account will be offset against the balance of your loan. This means you’ll pay less interest on your home loan. This will directly affect the amount you pay off your loan each month and, over time, will add up and reduce the time it takes you to pay off your loan.
If you are unable to make additional or lump sum repayments on your home loan an offset account could give you the benefits of reducing the amount of interest you pay while ensuring your funds are still accessible.
Jenny’s home loan balance is $340,000. She currently has $12,000 in her offset account. This means that Jenny is only paying interest on a home loan balance of $328,000.
If needed, Jenny is able to use the $12,000 at any time. However, by taking money out of her offset account this will directly affect the amount of interest she pays on her loan.
For more information about offset accounts and whether they will suit you visit one of our Home Lending Specialists in branch or phone 13 14 22. Criteria, fees and conditions apply.