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Making your savings work harder
The offset home loan is a loan that's linked to a savings account called an offset account. The offset account is a savings account but instead of receiving interest on your savings, the value of the savings is deducted from the balance of your home loan when interest is calculated. The more money you have in your offset account, the greater the portion of your repayments will go towards paying off your principal balance. This means that you can pay off your loan faster!

The key to success with the offset home loan is to grow your savings and leave your funds in your offset account as long as possible. At the same time, you will still have access to your funds at any time.
Here's an example:
Let's say you have a home loan of $150,000, with $50,000 in the offset account.

The $50,000 in the offset account reduces the amount of your loan that is charged interest to $100,000. The interest will be calculated as if you owed $100,000. The effect is the same as if you had deposited the $50,000 directly into the loan itself.

Meanwhile, the $50,000 in savings is available for you to use at any time.

Why don't you let the experienced finance professional, Garry, assist you in deciding which loan best suits your financial needs - and see how much you can save!
For more information contact GARRY BILLETT
Phone: 02 9817 8230
Mobile: 0418 963 626
© 2009 Business Trade Franchise Finance Pty Ltd - ABN 97 085 495 334. Australian Credit License No 388366.
Garry Billett is a member of the Mortgage and Finance Association of Australia (MFAA).
Garry Billett is a Justice of the Peace.
This advice was prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider if it's appropriate. It is a guide only and does not take into consideration your personal financial circumstances.