An offset account helps homeowners reduce their mortgage interest payments. By linking this account to a home loan, borrowers lower the interest charged. The account balance directly offsets the amount used to calculate interest.
Mortgage Street’s Super Prime product offers a 100% offset feature at no extra cost with an annual facility fee. This feature allows borrowers to connect their transaction account to their mortgage. By doing this, they decrease the total interest paid over the life of the loan.
For example, if a borrower has a $500,000 loan and $50,000 in their offset account, interest is charged only on $450,000. Making regular deposits into the account boosts savings over time.
Tips to Maximise Savings:
Make Regular Deposits: Borrowers should deposit surplus income, such as salaries or bonuses, into their offset account. This strategy helps minimise interest charges.
Use for Daily Transactions: Use the account for bills, purchases, and other expenses. Each dollar in the account offsets the mortgage balance until spent, continually reducing interest.
Redirect Savings: Borrowers can redirect the interest saved toward financial goals like renovations, vacations, or investments. This approach helps make money work harder.
With Mortgage Street’s Super Prime product, borrowers gain a 100% offset account along with flexible features. This product caters to their financial needs. Whether they want to reduce their loan balance faster or manage expenses more efficiently, it offers practical solutions.
To discover how an offset account can help save thousands in interest, borrowers should contact one of Mortgage Street’s accredited mortgage brokers. Brokers will guide them through the process and create a tailored plan that fits their financial situation.