2. OFFSET ACCOUNT

This is an everyday transaction account that is linked directly to your home loan and is common among most variable rate loans.

It allows the customer to park excess cash in their day-to-day account and reduce their monthly interest bill – so if you don’t have one of these accounts, make sure you phone up your bank and see if you can get one.

An offset account will shave your interest costs dramatically.

For example: on a $300,000 loan, if you have $10,000 in an offset account you will only pay interest on $290,000.