Save with mortgage offset
Paying off a mortgage faster and increasing savings are top priorities when you’re a homeowner. There is a way that you can work towards achieving both of these goals at the same time. It’s called mortgage offset.
What is mortgage offset?
Mortgage offset is just like a regular transaction account but it’s linked to your home loan. The total amount that’s in your offset account is then ‘offset’ against the amount owing on your home loan when interest is calculated. This means the more you have in your offset account, the less interest you pay on your home loan, so more of each repayment goes towards reducing the loan.
Every dollar saves you
Even if you find it difficult to save, you can start to benefit from an offset account simply by depositing your wage into it every month. So rather than having your monthly income sitting idly in a transaction account, you can have it constantly working to reduce your mortgage interest but still have access to everyday funds.
Check out the example below:
This information is general in nature. It does not take into account your personal needs and financial situation and you should consider what is appropriate for you. Please consider our Products and Services Conditions of Use and Financial Services Guide in deciding whether to acquire any Defence Bank product or service. These documents together with current interest rates and terms are available at defencebank.com.au