Can I Have a 100% Interest Offset Account with My Commercial Loan?
Offset accounts are a type of transaction account that is linked to your existing loans and can be used to offset the amount you owe on your existing mortgage agreement. You may be wondering if you can have a 100% interest offset account with your existing commercial loan.
Yes, you can absolutely have a 100% interest offset account with your Mortgage House commercial loan. A commercial loan is a type of loan that can provide you with a strategic advantage for your business. Our commercial loans are capable of helping you with property investment, refinancing, and owner-occupied premises while also helping with increasing your capital, long term leases for your tenants, and equity accrual.
How Can a 100% Interest Offset Account Benefit Me?
As we mentioned previously, offset accounts are a type of transaction account that is linked to an existing loan. Offset accounts can be used to offset the amount you owe on your existing mortgage agreement, also known as the principal loan amount.
A 100% offset account can largely benefit you. Offset accounts have the potential of saving you interest by ensuring that you depsit your earned income and savings into the offset account. Because interest on your existing loan is calculated daily and charged monthly by your mortgage lender, having a balance in your 100% interest offset account can save you interest. If you have a balance of $200,000 in your offset account that is linked to a loan with a principal amount of $300,000, you will only be required to pay interest on the remaining $100,000.