Offset Accounts, Lines Of Credit And When To Use These Whistles And Bells

Hi all. Found an excellent article that I am sure many will relate to. Hope you get something useful out of this...  

When choosing a mortgage you will likely notice a number of extra features, such as offset accounts, that may be available to you. These ‘whistles and bells’ can prove very useful if utilized correctly, however not every add on will suit every home owner – particularly if you are paying for the privilege.

In this article, we will have a look at some common added features for loans, however there are many others and lenders are increasingly creating new products that provide borrowers different opportunities and facilities. For this reason, there are also some tips below to assist you with determining, generally, whether the feature is worthwhile.

Common features you may come across:

Offset accounts: These are standard transaction accounts that you have linked to the loan on your property. You can put whatever you like into the account and take funds out and at the end of each day the amount in the account is “offset”, hence the name, from your loan. Effectively, you can keep savings in that account and any spare money each day and lower the interest you have to pay.

Looks like really useful info, eh? Just click the link HERE to find out more from the horse’s mouth! If you’d like to share perspectives or discuss how it relates to your business, call me on (0414) 934-277 or email me at [email protected].

Thanks,

Carmen