How Can a Toggle Offset Account Help The Clients Save Money on Their Home Loan?

Mortgage brokers should have the knowledge required to successfully assist their clients with any questions or concerns that may arise about toggle offset accounts. A toggle offset account can save a client money on their home loan by reducing the amount of money the client will pay on the home loan interest and allowing the client to reduce their home loan interest rate if it rises. 

A toggle offset account is the combination of a variable and fixed interest rate with a traditional mortgage offset account. Toggle offset accounts allow a client to pay less in interest on their home loan by offsetting the balance of the toggle account with the amount still owed on their existing home loan. A toggle offset home loan allows a client to separate their toggle offset account into 2 divisions so they can easily move back and forth between a variable and fixed interest rate, depending on which option will prove more beneficial to the client. 

For example, if a client has an existing home loan worth $200,000 with a balance in their toggle offset account worth $100,000, they will only be required to pay interest on the $100,000 difference. As we can see, this will save the client a large percentage of money on interest and can allow them to pay off their home loan faster than originally expected. 

An individual interested in a toggle offset account should reach out to their current mortgage broker to learn more about the ways their home loan can be benefitted and any rules or requirements in place.