How Can a Toggle Offset Account Help Me Save Money on My Home Loan?
At Mortgage House, we pride ourselves on being forward-thinking and taking an innovative approach to home loan products. One of our unique offerings is a toggle offset account, which can help save you money on your home loan.
What is a Toggle Offset Account?
A toggle offset account combines a traditional offset account with a variable and fixed interest rate. With a traditional offset account, you can decrease the amount of interest you are paying on your home loan by offsetting your outstanding loan amount with the balance of your account.
With a toggle offset loan, you can divide this account into two portions, moving back and forth between a fixed or variable interest rate. You can fix your interest rate when having a fixed rate is beneficial. You can switch to a variable rate when a variable rate is beneficial. This allows you to get the best interest rate without having to refinance your home loan and incurring break costs.
How Does it Help Me Save Money?
As mentioned above, an offset account reduces the amount of interest you are paying on your home loan. If you have a home loan worth $700,000 and an offset account with a balance of $200,000, you will only be charged interest on the $500,000 difference. Being able to toggle between a variable and fixed interest rate allows you to change your interest rate to a lower one if interest rates rise, which saves you even more money.
If you want to learn more about the benefits of a toggle offset account, contact the experts at Mortgage House.