Offset Account With Unlimited Free Transactions
The Bank Account
A bank account should help you save money, and if you’re in a position to buy a property then no doubt your bank account has probably been a useful tool, keeping your money safe and even offering you a little interest. But a bank account is only valuable when you have no debt.
Once you take on a loan your trusty old bank account isn’t so helpful anymore and could end up costing you thousands…
Why?
From the moment you take out your first loan, a regular bank account starts to cost you thousands of dollars over your borrowing life. That’s because the interest you pay on a loan is often far more than the interest you earn on a bank account.
So why do millions of Australians keep their regular bank account and miss out on massive savings? Because no one has ever told them! It’s Australia’s best kept bank secret… and we’re spilling the beans!
The Offset Account
An offset account is a home loan feature that helps borrowers save on interest. Money deposited into this account linked to your loan, reduces the loan balance before interest is calculated daily. An offset account is supposed to provide a solution to the money draining bank account, but borrower beware, offset accounts aren’t all the same and, depending on their features, some will save you significantly more than others.
“It’s A Win Win”
~ Ken Sayer, CEO of Mortgage House
Every dollar put into the offset account ‘offsets’ daily, against the loan balance and reduces the amount of interest payable by you every single day.
This Is Australia’s Best Kept Secret!
A regular bank account may not be ideal when you have a home loan. The magic happens when you keep all your savings in an offset account linked to your home loan. That way, your funds work to save you interest on your loan, plus you can access your funds anytime.
Regular Bank Accounts
- Credit Card
- + Home Loan
- + Transaction Account
- + Savings Account
- + Safety Account
- + Holiday Account
=
MULTIPLE HIGH INTEREST RATES
EARNED INTEREST = TAX
Vs.
Mortgage House Offset Account
A home loan that also acts as an old fashioned transaction account with unlimited free transactions.
=
ONE REDUCED INTEREST RATE
SAVING INTEREST = NO TAX
Know Which Options Work Best For You
Depending what stage of life you’re at, your financial circumstances could change. Knowing which options work best for you can help you achieve your goals sooner.
The Younger Years
When you’re starting out and don’t have any debt it probably make sense having a regular transaction account for everyday expenses and keeping your savings in an interest-earning account.
The Golden Years
You’re more likely to be settled financially with most of your debt paid off. At this time you might be more comfortable having your savings in a regular bank account.
The Wealth Creation Years
A time where you may have the most debt, be it a mortgage, investments, car or personal loans. It’s also a time when every hard-earned dollar counts. Having an offset account is one of the best home loan features you can have to help save on interest payable and reduce the term of the loan.
Need More Clarification?
If you have a $400,000 mortgage and there is $40,000 in your linked offset account – you will only pay interest on the balance of $360,000. Meaning the more you have in your offset account the more interest you will save!
Example
Without an offset account
Monthly repayments = $2,456.35*
You pay interest on the full $400,000 balance.
With an offset account
The savings in your offset account reduces your home loan balance.
Monthly repayments = $2,456.35*
But you only pay interest on the $360,000 balance.
Interest saved: $98,254
Time saved: 3 years, 3 months
Revised term: 21 years, 9 months
*The results are an approximate guide and should not be used as exact values for financial planning purposes. The results do not constitute an offer to provide credit and do not imply that credit is available. The example above is calculated based on 5.5% interest rate over a 25 year home loan term. It is to be used only as an indication of the interest and time you could save by having money in your Offset Account. Interest rates may change at any time without notice.
Top Tip
Leave your salary in the offset account and use your credit card for all expenses. Take maximum advantage of the interest-free days, while your salary offsets the home loan and saves you interest. Your offset account is compatible with all major credit cards, including MasterCard, Visa and AMEX, so when you receive your statement just pay off the balance in full. It’s that easy.
100% Offset Facility Helps You Maximise The Benefits
100% Offset
100% of funds in your everyday transaction account contribute to reducing principal and maximising savings on interest.
Interest Savings
If you have wages paid into your everyday transaction account you will always save on payable interest.
Free
A regular bank account may charge you fees but a Mortgage House Everyday Transaction account is free.
Easy Access
Access your money from anywhere with your everyday transaction account just like a regular bank account.
Additional Repayments
Make additional repayments into your everyday transaction account.
Maximise Savings
Reduced tax-free interest benefit on your everyday transaction account.
Convenience
BPAY functionality means you can make and receive payments, to and from your everyday transaction account. Pay bills and even receive payments from other people, all using BPAY
Familiarity
BSB and account number works in the same way as a regular bank account.
Save With A Credit Card
Use a credit card for purchases and boost your offset balance for longer to save interest.
What You’ll Need To Get Started
Already With Us?
- PAYG: Last pay slip if your salary is not paid directly into the loan.
- Self-Employed: Last years tax returns for individuals and business.
New To Mortgage House?
- High resolution proof of identification
- Proof of employment
- Self-Employed: Last 2 years tax returns for individuals
- Latest years tax assessment notices