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Offset accounts

Offset accounts are an investors best friend. Any money sitting in an offset account will reduce the amount of interest you will pay on the loan that the offset account is linked to.


Lush Property - Shepparton - Property investment, Property development, renovation, buyers agent

What does that mean?

Your money isn’t sitting idle and not working for you. Whats even better is you can have both your salary as well as your rental income paid into your personal offset account that will reduce the interest on your home loan. Nothing like using investment income to reduce your personal home loan interest costs.


With bank savings accounts paying a measly 0.2% pa, the money in your offset will be saving you at the rate of your home loan interest rate.

If you had $50,000 in an offset account, and your home loan has $350,000 owing, the bank will only calculate the interest payable on the $300,000 balance ($350,000 less your $50,000 bank balance). How good is that! That equates to $1,500 per year at a 3% home loan rate. If that $1,500 saving was paid directly off the mortgage, at a rate of $57 per fortnight, you would save close to $24,000 over a 30 year loan term and pay your loan back 3 years and 6 months earlier.

To find out how to get your bank accounts to work both smarter and harder for you, get in touch with us today by booking your free 45min strategy session here




Luke Jorgensen - Lush Property


Tags - Property Investment; Property Development; Renovation; Valuation; Valuer; First Home Buyer; Buyers Agent; Buyers Advocacy