Konnect Financial Services help a range of people with their home loans in Geelong, our job is top help our clients get the best loan for them, and then help them to save and acquire as much wealth as possible. One way to save money and reduce interest repayment on home loans is to consider starting a mortgage offset account.
What is the purpose of a Mortgage Offset Account?
An offset account is a transaction account that can be linked to your home or investment loan. The credit balance of your transaction account is offset daily against your outstanding loan balance, reducing the interest payable on that loan.
Offset accounts reduce the interest payable on your loans, allowing you to make the most of your income and thereby reducing your loan term.
How an offset account can work for you:
A customer with a $150,000 home loan over 30 years would pay approximately $167,190 in interest. If the customer had an offset account linked to the home loan for the entire loan term with a constant balance of $10,000 in it, they would pay the loan off in 26 years and 4 months and pay just approximately $127,553 in interest.
This represents a saving of three years and eight months on the total length of the loan and approximately $38,636.95 saved in interest payments: that’s a brand new car, a wedding, or could be used towards a deposit on an investment property!
Please note: These figures are based on a Standard Variable Rate of 7.36% p.a.
We not only assist our clients with finding the right home loan for their situation, but our post-settlement service is second to none. Post settlement we help our clients and show them how to correctly set up their bank accounts and how to link them the right way with their loan accounts to maximise long-term value. We want to help you save money on interest repayments and reduce the length of your loan at the same time.
Contact us today to find out more about our home loan services in Geelong, we can help you get the right deal for your situation! At Konnect Financial Service we have access to all the major banks and many other leading lenders.