Home Loans -
Offset Loans
The Australian
market has changed a lot in the last twenty years. Deregulation
and the growth of competition have meant many different lenders
are now available to modern consumers in addition to the traditional
banks and building societies. Each of these has a range of
loans so there are literally thousands of products on the
market today.
These options will fall into basic categories and these can
be split or combined in different ways to suit the individual
borrower’s needs. Loans also have optional features that can
be utilised. Features like ‘Interest Only’ payments, Re-draw
options, and linked credit card or cheque book facilities.
We can define the ‘basic’ loan options for most borrowers
in this way.
Offset Loans
An “Offset” loan establishes a link
between a client’s savings or transaction account and their
mortgage and allows the interest charges in the mortgage account
to be ‘offset’ by the interest earned in the savings account.
This type of loan allows some value to the borrower from their
saved funds. The earnings from the offset account reduce the
cost and term of their mortgage. These loans vary according
to how much interest can be offset and how the offset is calculated.
So the value of this loan can vary according to the income
and savings position of the borrower.
Contact us today for a free consultation.
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LOOKING FOR A BETTER
DEAL ?
Whether you are buying your first home or refinancing
Prosperity Mutual can help you save money on your home loan
and guide you from initial consultation stage all the way
through to settlement. Our company prides itself on providing
its customers with a personal service second to none. Services
operate in Sydney, Canberra and Melbourne.
CONTACT US
TODAY ON 1300 854 667
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