Tips for Saving Money on a Mortgage
SAVE MONEY IN AN OFFSET ACCOUNT
Saving money on your mortgage can help you to pay it off sooner or reduce your repayment amount. Depending on how your loan is set up, using offset accounts to your advantage can help you to save.
An offset transaction account works the same as an everyday transaction account except that it’s linked to your home loan. As interest on your home loan is calculated daily, the more you have in your offset accounts on any given day, the less interest you’ll be charged for that day.
Depending on your home loan, you could have multiple offset accounts set up for different purposes; like bills, spending and saving. All these accounts will be working to save you interest on your home loan.
Source: Adi Mashelkar, Bankwest Home Finance Manager
