Stay at Home Mum – Survive and Thrive on One Wage

Offset Mortgage Account

Offset Mortgage Account Keeping your savings in an off-set account WILL reduce the amount of interest you pay on your mortgage. If your not familiar with the term off-set account, Example: Mr T and Barbie have a $100,000 mortgage, and $10,000 in savings in a linked 100 per cent offset account. The principal on a $100,000 loan is reduced by the $10,000 offset account to $90,000. As a result interest only accumulates on the $90,000 balance of the loan. Repayments continue to...