Is It Better if the Clients Have Money in Offset or Savings?

If a client inquires about if it is better to have money in an offset account or savings,  their mortgage broker should be able to successfully answer their question. Generally, it is better to have money in a mortgage offset account than a traditional savings account, so the client can pay off their mortgage faster and save money on interest. 

A mortgage offset account is a type of account that is linked to an individual’s home loan. Mortgage offset accounts allow homeowners to deposit funds into the account, which will then offset against the amount currently owed on a home loan, saving time and money on mortgage repayments. The more money that is kept in a mortgage offset account can result in more money and time being saved on repayments. 

A client with a mortgage offset account will be allowed to make deposits and withdrawals like a traditional transaction account. Additionally, a client will be able to access their funds through a debit card or by writing checks. 

Mortgage offset accounts are a great way for a broker’s clients to successfully save money and time on their home loans. If a client has a $100,000 home loan and deposits $20,000 into their mortgage offset account, they will only be charged interest on $80,000 for the amount of time the $20,000 is kept in their offset account. The more money that is added will reflect more savings on interest. 

An individual interested in learning more about mortgage offset accounts and how they can benefit from an existing home loan should reach out to their current mortgage broker to inquire.