So, it’s no surprise that refinancing your mortgage could save you a lot of money in the current economic climate.
Are you wondering how best to take advantage of a great deal?
Offset your mortgage
If you’re one of the lucky ones and have managed to make it to 2021 with some extra money to your name – then a great way for you to make the most of the current circumstances is to load up your offset facility.
An offset facility itself is nothing new, and different lenders will offer you different offset accounts depending on your loan type - or may not offer one at all!
Where it gets enticing is pairing the ability to offset a high proportion of your loan - up to 100% in some cases - with an extremely low fixed rate.
How does offset work?
Think of an offset account as a savings account that is attached to your home loan. But rather than earning you interest like a typical savings account, it will “offset” some of the interest on your home loan.
If you have a home loan, you pay interest on the amount you owe the bank. But the total of your offset account is subtracted from your total loan size, leaving you with a smaller amount to pay interest on. So the amount in your offset account helps reduce your mortgage repayments.
Get the right combination for you
While there are positive signs of economic recovery, it will take time and there’s still some uncertainty looming.
The comfort of a longer-term fixed rate with a generous offset facility, can give you better control of your regular repayments and take full advantage of the low rate environment.
If you’re getting tempted by some upfront cashback promos – it’s worth doing the sums to see how much you can really save.
Use our repayments calculator to see what you could save by refinancing and using the offset facility.
Whether it’s saving for some big life moments or getting a rainy-day fund on the go – it’s unlikely your savings account will be able to do much heavy lifting for you in the near future.
Now’s a good time to revisit your plans and build the right financial goals for your specific circumstances.
And if you don’t have a plan or goals in place – it’s the perfect time to set some up.
ANY ADVICE PROVIDED IN THIS ARTICLE IS OF A GENERAL NATURE ONLY AND DOES NOT TAKE INTO ACCOUNT YOUR PERSONAL NEEDS, OBJECTIVES AND FINANCIAL CIRCUMSTANCES. YOU SHOULD CONSIDER WHETHER IT IS APPROPRIATE FOR YOUR SITUATION. PLEASE READ THE APPLICABLE PRODUCT DISCLOSURE STATEMENT(S) ON OUR WEBSITE BEFORE ACQUIRING ANY PRODUCT.
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