Offset Accounts can help property investors save money by reducing the amount of time it takes to pay off your loan and can help insulate you against interest rate rises.
Offset accounts are effectively, a savings account that is
attached to your home loan.
However unlike a normal savings account, an offset account
pays interest at the same rate as your home loan and is tax free.
As the name implies, the money in your mortgage offset account,
is deducted from your loan balance daily.
This can reduce the amount of interest you need to pay
considerably and your monthly mortgage repayments will reduce the loan amount
faster.
By depositing your rental income each month and using it
like a regular account to make payments, you can save thousands over the life
of the loan.
Leaving your money untouched for longer periods will help
lower your home loan repayments every month, as well as your overall interest.
Want to know more about how an offset account can assist your
investment strategy?
Contact us @ propertyloans@realrenta.com and
we will get our trusted Finance Partner to contact you for a discussion.
Marlene Liontis
Monday, 28 October 2019
