Most homeowners would like to own their home sooner and become debt free. One of the ways they can do this, is by taking advantage of a 100 % Off set Account from the Northern Beaches Credit Union(NBCU).
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Could You own Your Home Sooner?
A 100% Offset Account linked to your mortgage is a fantastic option which could help you pay off your loan sooner and save thousands of dollars in the process. A 100% Offset Account is similar to a regular transaction bank account, with the difference being that it is linked to your home loan. The funds in the account are offset daily against the outstanding balance of your home loan, actively working to reduce the amount of interest you have to pay and shortening your loan’s life span.
How To Get The Best From A 100% Offset Account?
Choose a home loan option which offers 100% Offset Account with no monthly loan fees – this type of loan is available with Northern Beaches Credit Union (NBCU) even on fixed rates. With the interest being calculated daily it pays off to keep your balance in your offset as high as possible. It’s best if you have your salary paid straight into your Offset Account. This way your income will instantly reduce the interest on your repayments.
Should You Earn Interest Or Save It?
While it’s nice to see your money earn interest, you are generally better off with an Offset Account. Remember, any interest you earn on a savings account is taxable, where as you won’t pay tax on any savings you make on your home loan.
How A 100% Offset Works?
Using your 100% Offset could save you over $28,000 and cut over 2 years off your loan
EXAMPLE:Your loan is for $300,000 for 30 years but you have $10,000 saved in your Offset Account. The interest is calculated on $290,000. Assuming that the interest is 6% (over the term of the loan and you continue to keep $10,000 in the Offset Account and make monthly repayments), this could save you over $28,000 and cut over 2 years off your loan.
FOR MORE INFORMATION ABOUT OUR HOME LOAN RANGE CALL 1300 13 1964 OR VISIT NBCU.COM.AU OR DROP INTO YOUR NEAREST NBCU FINANCIAL SERVICES STORE
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This article contains general advice only and does not take into account your individual objectives, financial situation or needs(you personal circumstances. All loans subject to lending guidelines, terms and conditions, fees and charges apply. Northern Beaches Credit Union (NBCU)is a division of Community First Credit Union Limited ABN 80 087 649 938 AFSL/Australian Credit Licence 231204.