Did you know about Home Loan or Mortgage Offset account ?

Did you know about Home Loan or Mortgage Offset account ?



Westpac Bank Offset Account




A mortgage offset account is just a savings account linked to your loan account. not like an all-in-one loan that mixes your master card together with your transaction accounts, an offset account works sort of a regular savings account. the large distinction is that the balance within the savings account is offset against that owing on the mortgage. Any ‘notional’ interest on savings is earned at constant rate because the linked loan.

Over time, savings in your offset account will facilitate to scale back the loan principal, permitting you to pay off your loan sooner or build up equity.