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Your Online Mortgage Broker

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24.01.2022 Is an offset account worth it? If you don’t have funds held in your offset account regularly, then you may not receive all that much benefit from an offset account. In many cases an offset account may have some type of additional fee for the product, if you don’t use your offset account regularly as part of your mortgage reduction strategy then you need to ask yourself the question ‘am I paying extra for this privilege and is it costing me more than it is savings me?’. #offset #homeloan #savemoney

23.01.2022 Benefits of offset accounts Mortgage offset accounts work similar to your savings account, except that rather than earning interest on your savings you simply save money on your mortgage. So on one hand you could be earning a rate of say 3% on your savings, which then may be subject to tax at your marginal tax rate on the other hand you could just simply save 5% on your home loan and not pay the interest to begin with. #offset #homeloan #savemoney

22.01.2022 What is an offset account? You may have heard the term ‘mortgage offset account’, but not quite sure what it’s all about or how it can help to reduce your mortgage faster. Also known as an offset home loan or interest offset account; this is a financial product acquired through the bank and is essentially a type of savings account linked to your home loan account. There are essentially two accounts in an offset facility. The first is a transaction account where you keep your savings, similar to how you would in savings account. The second is the home loan account itself. #offset #homeloan #savemoney

20.01.2022 I’m considering an interest only home loan what do I need to know? It’s important to understand how interest only loans may affect your repayments in future. If you’re on a 30 year loan term with principal and interest repayments, then your repayments are calculated over this time if however, you take a 30 year loan term, with an initial 5 year interest only loan term once that 5 years interest only period is over you now only have 25 years to pay the remaining balance. What this means is that your repayments are calculated over this time and thus you not only have a higher repayment, but have to demonstrate the bank you can also afford these higher repayments so it could in turn affect your borrowing capacity. #interestonly #homeloan #emanatefinance

14.01.2022 What does an offset account do? An offset account helps to reduce the amount of interest you pay on your mortgage, which in turn helps to reduce the principal at a faster rate. Since your loan principal may be significantly reduced, you may be able pay off your loan much sooner than you plan, or build up your equity much faster than you expected. #offset #homeloan #savemoney

09.01.2022 How to use an offset account? Mortgage offset accounts can be used as a fully functional transaction account. Therefore, you can use this account in order to regularly manage your cash flow. You can direct your incomes to your linked offset account. This arrangement allows your income sources to contribute to offsetting your home loan interest. #offset #homeloan #savemoney