Can I Save Interest If I Have a Mortgage House 100% Offset Interest Account?
If you are researching the various types of loan products and features available to you, you may want to learn if you can save interest if you have a Mortgage House 100% offset interest account. With a Mortgage House 100% offset interest account can help you reduce the term of your existing loan and save on interest payable.
An offset account is a type of transaction account that is linked to your existing loans, which can be used to offset the amount you owe on your existing mortgage agreement. Depositing all earned income and savings into your 100% offset account will offset your loan balance, and because the interest on your loan is calculated daily and charged to you monthly by your home loan provider, you will successfully save on interest. Let’s say you have an existing loan of $500,000 with a balance in your linked offset account of $100,000 – you will only owe interest on the $400,000 loan balance.
A Mortgage House 100% offset account can also allow you to save on taxes, because the interest you save with your offset account is not subjected to taxation because it is considered as savings.
It is highly recommended to keep your earned income and savings in an offset account rather than a high-interest savings account because of the benefits we discussed, which are saving on interest and taxes. If you are interested in learning more about a Mortgage House 100% offset account, reach out to our team of professionals for further information.