27 Oct 2021

All Income Credited to Their 100% Offset Account

Managing your monthly home loans can be challenging. However, there are ways to minimise your mortgage repayments. One of the most popular ways is by crediting your income to a 100% offset account. 

Basics of a 100% Offset Account

Offset accounts are transactional accounts linked directly to your mortgage. You can deposit and withdraw funds into and from this account at any time. The balance in your offset account is used to offset the amount remaining on your mortgage, directly affecting your interest rate. Your lender can only charge you interest on the difference between the amount in your offset account and the amount remaining on your mortgage. 

For example, if you have an outstanding loan amount of $300,000, but you have an offset account with a balance of $100,000, your lender will only charge you interest on the $200,000 difference. 

Since you can use the funds in your offset account at any time, we recommend depositing 100% of your income into your offset account. A lower interest rate provides you with more financial flexibility, allowing you to manage your money better. Lower interest rates can also help you pay off your mortgage sooner by giving you extra money to put towards your principal repayments every month. 

Mortgage House Difference

At Mortgage House, we want to help you maximise the benefits of your 100% offset account while minimising your mortgage repayments. Our financial experts and lending specialists will help you pay off your mortgage sooner using your 100% offset account.

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