Finance News

Why do I need an offset account?

Why do I need an offset account? Author: Courtney Thomas In today’s home loan market, an offset account is widely publicised as a great way to pay down your home loan faster. But what is an offset account? An offset account is an everyday transaction account that’s linked to your home loan. There are plenty of benefits to an offset account.
  • Any funds held in your offset account are reducing the amount of interest paying in your home loan. For example, if you had a home loan of $400,000 with a linked offset account of $50,000, you would only be paying interest on $350,000
  • An offset account acts as a transactional account with most lenders offering access cards, internet banking and phone banking
  • You can deposit your salary into your offset account, allowing you to save on interest right up until the funds are needed
  • Some lenders now offer multiple offset accounts against your home loan. This is a great feature if you want to separate your funds; for example, a fund for everyday living, another to save for a holiday, etc.
If you’d like to learn more about offset accounts and other ways to save, contact our office to speak to one of our accredited mortgage brokers or debt specialists.   General Advice Disclosure: This document contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser, AMP Financial Planning and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.

ASCK Pty Ltd (ACN 105 450 566), trading as AMEGA Financial Solutions is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited Australian Financial Services Licensee and Australian Credit Licensee 232 706. General advice warning: This website contains general information only. It does not take into account your objectives, financial situation or needs. Please consider the appropriateness of the information in light of your personal circumstances.

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