Mortgage Offset Account
- The mortgage offset account balance reduces the interest payable on the home loan account.
- As no interest is actually paid on the mortgage offset account, there is no tax payable to the ATO.
- Overall interest savings as the interest income received on savings account balances is always several percent lower than the interest payable on home loans.
- You pay your mortgage off faster.
- The mortgage offset account is a financial buffer that can be drawn down in emergencies.
Implementation process:
- Have your bank set up a mortgage offset account linked to your home loan.
- Have your salary or wages paid directly into your mortgage offset account.
- Use your credit card for everyday purchases and repay the full credit card balance at the end of each month (to avoid paying any interest).
Similar posts you may like
- How to make a business more saleable and attractive to buyers
Strong financial performance: Buyers are typically interested in businesses with consistent and healthy financial performance. Market opportunity: Buyers look for potential for future growth Read more
- Consistency is key to exceptional business results
The key to exceptional business results is consistency. If you do nothing else, be consistent. Consistency doesn’t mean being the best at something or Read more
- Infamous Tax Evader – Al Capone
Alphonse Gabriel “Al” Capone (c1899 – 1947) was an American gangster who attained fame during the Prohibition era as the co-founder and Read more
- Insights from fast growing businesses
Nobody accidentally finds themselves on top of the mountain. You only get there by having a goal, working to a plan, and working hard Read more
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2