The Courier-Mail

2. OFF­SET AC­COUNT

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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.

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