If you have a home loan you need to consider using an offset account.
Put simply: An offset account is a transaction account linked to an eligible home or investment loan. The money you have in this account will either fully or partially “offset” the amount you owe on that loan, and you’ll only be charged the interest on the difference.
A top financial planner that we deal with on a regular basis puts it simply “Offsets……the most powerful tool in reducing your mortgage is offset accounts. If you don’t have them (offset accounts) this is costing you a fortune (in extra interest repayments) each month.”
I find that things tend to be simplified with a picture so see below.
As usual, if you have any questions, please don’t hesitate to contact me on 1300 422 506