What are the major benefits of an offset bank account (if any) for first home buyers? Is this more beneficial for those with older loans.

Hi Teya,
An offset account can be of great benefit to anyone with a home loan. An offset account uses your regular savings or transaction account balance to reduce the interest you are charged and therefore allows for more of your repayment to reduce the amount owing or principal of your loan. You also have access to these funds and you can spend them at anytime which can be a trap. If you would like to discuss your options or you have any further questions, please feel free to get in contact
Kind regards
Scott
Scott.howell@mobilelender.com.au
www.mobilelender.com.au
0435474498

Circa 2017 all good loans should have an offset
It allows you to channel your salaries etc into the home loan
This reduces your cost of banking and the " off set " benefit is because home loan interest is calculated daily the time any funds remain in the offset helps with your interest payable
They are obviously a number of additional benefits BUT these are the 2 main reasons you would use an offset
I would be delighted to discuss with you personally
roscoacademy@gmail.com
Have fun
Cheers Rosco

Hi Teya,

Any loan should have an offset account . It's like having a savings account linked to your mortgage. Instead of receiving interest on the savings account, and paying tax on the interest, the interest payment due on the loan is calculated only on the net balance of the loan less what is in the savings account. So it can reduce the amount of interest you need to pay on your mortgage. For example, if your mortgage was $100,000 and you had $10,000 in your Offset account, you would be paying interest only on $90,000.

If you wanted some more information, please search for me through the "Industry experts" tab and click on my business name under "Name of Business" and all my contact details are there. I would be happy to answer any further questions.

Cheers,

Michael Budge
Director
Bayside Finance Group