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Vince

1 year ago

Hi again, if you would like to get more information on offset accounts and how they can possibly work for you it is a simple matter of clicking on profile pictures and replying direct to get a broker to get in touch with you and answer any follow up questions you might have directly .

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Rlight

1 year ago

hi

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Rlight

1 year ago

Thank You all

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David

1 year ago

The only thing I’ll add is that most Banks only allow a 100% offset against a variable loan but some will also allow with a fixed rate loan (but not all Banks will do this).

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Vince

1 year ago

Offset accounts and in particular the 100% offset is s great tool that can allow more of your repayment to reduce the capital of your loan it also works harder than other accounts in that the earnings are reduced interest so you do not pay tax on the account earnings that you save where you might pay tax on interest earned on a conventional account

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Gary

1 year ago

Hi ? Both Peter and Raj have given a pretty good summary. $200k loan with $10k in offset can mean you are paying interest on just $190k. As Peter has advised, watch out for partial offset versus 100% offset and also be careful about the fees and different interest rates at times that some Banks charge to have offset. There are also some tax advantages that offsets can provide to think about as well. e.g. You don't get taxed on money you save on your home loan but you do get taxed on interest you earn. There can be some other advantages around investments or if you are ever thinking of changing your existing property from Owner Occupied to Investment but they would take a bit to explain. Please contact one of us. I love passing on that type of information and I am sure any of the others here would also. Kind Regards Gary

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Peter

1 year ago

Hi, Offset accounts are accounts that are linked to your mortgage, the account balance that reduces the interest you pay on your mortgage, by only charging you based on the net balance. Effectivley if you had a mortgage balance of $100K and an offset account with a $20,000 balance, then your interest will bw calculated on the $80K. Different lenders will apply differnt rules to offset accounts. Some will offer 100% offset, others will only allow partial offset. The whole concept is not that easy to explain in this short narrative, however I am alway happy to discuss with you. In considering an offset account you also need to consider your future needs to ensure that this is the right tpye of account to use. Peter

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Suman

1 year ago

An offset account is a savings account or transaction account linked to your home loan account. The account's balance is 'offset' daily against your home loan balance, and as a result you're only charged interest on the difference between the two. For example, if you have a home loan balance of $200,000 and have $10,000 in your offset account you'll only pay interest on $190,000. Contact me through my profile if you are looking for a home loan with offset account. Kind Regards, Suman

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