How a Mortgage Offset Saves You Money

HOW A MORTGAGE OFFSET SAVES YOU MONEY 2$ MORTGAGE ACCOUNT MORTGAGE OFFSET A MORTGAGE OFFSET can save you interest on your home loan. To calculate the interest you pay, the total in your mortgage offset is subtracted from the balance of your home loan and the interest is charged on the reduced amount. Effectively, this reduces the amount of interest you pay. By paying less interest, more of your repayment goes towards paying off your home loan sooner. HOW MORTGAGE OFFSET WORKS $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$$$ $$$ $ $$ $200,000 $20,000 = $180,000 interest is only charged on the reduced amount balance of loan in your offset WHAT YOU NEED TO KNOW ABOUT OFFSET 1. When looking into a home loan offset, check: • That it offers 100% offset • It is fee free* (check for hidden 'package' fees) • That your interest is calculated daily 2. Get the maximum benefit from your salary Make sure your salary is credited directly to your mortgage offset 3. Establish the discipline of leaving your salary there as long as possible January Make sure you focus on reducing expenses to ensure the maximum amount can be retained in your mortgage offset for as long as possible 4. Ensure all your savings go into your offset $. This will usually be your most effective investment 5. Ensure lump sums are paid into your offset Tax returns, bonuses, lotto wins! 6. Get every cent of spare change into your offset 2$ Check behind the sofa! 7. Make sure you secure the lowest rate mortgage you can! Every cent not paid on interest can pay off your home sooner! *loans.com.au offer fee free, 100% mortgage offsets. T& C's apply. loans.com.au %24 %24