Peasy Street

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Offset Accounts: Not just a bunch of hot air

 

The right home loan strategy can help ease the weight
of your home loan to save you time and money.

We get asked a lot about offset accounts and how they work,
but we often hear of them being used incorrectly.

Here’s a few words from our Director, Joel Wyld about Offset Accounts and how to use them:

Here is how they work;

An offset account is a transaction account that can be linked to your home or investment loan. The credit balance of your transaction account is offset daily against your outstanding loan balance, reducing the interest payable on that loan.

Offset accounts enable you to make the most of your income and other funds to reduce the interest payable on your home loan, thereby reducing your loan term.

For example, a customer with a $150,000 home loan over 30 years would pay approximately $167,190 in interest. If the customer had an offset account linked to the home loan for the entire loan term with a constant balance of $10,000 in it, they would pay the loan off in 26 years and 4 months and pay just approximately $127,553 in interest. This represents a saving of three years and eight months and approximately $38,636.95 in interest. This is based off a rate of 5.56%…

Here are some tips on offset accounts;

We DO have lenders who can offset on a fixed rate – for those customers who like to have stability in repayments, and flexibility with their loan.

Offset accounts save you interest from day one. Sale proceeds from a property can go straight into the offset account whilst still remaining available to draw.

You can have 100% of the loan being offset and pay $0 interest (e.g. $300k loan with $300k in the offset). This is great as the bank won’t close the loan account

There is no minimum deposit or redraw amount on most offset accounts.

In addition to the above, there are a bunch of benefits and rewards both short and long term form opening an offset account. If you would like to see if an offset account is suitable for you, please get in touch with a Peasy broker or request a call back today.

 

DIRECTOR & OPERATIONAL MANAGER

Amanda

Amanda is the Director and Operations Manager at Peasy, and one of the steady hands behind the business’s people, processes and customer experience. She helps connect the moving parts, from supporting the team to improving internal systems, so Peasy can deliver the kind of service clients remember for the right reasons. 

Amanda is the Director and Operations Manager at Peasy, and one of the steady hands behind the business’s people, processes and customer experience. She helps connect the moving parts, from supporting the team to improving internal systems, so Peasy can deliver the kind of service clients remember for the right reasons. 

Amanda is the Director and Operations Manager at Peasy, and one of the steady hands behind the business’s people, processes and customer experience. She helps connect the moving parts, from supporting the team to improving internal systems, so Peasy can deliver the kind of service clients remember for the right reasons. 

Amanda is the Director and Operations Manager at Peasy, and one of the steady hands behind the business’s people, processes and customer experience. She helps connect the moving parts, from supporting the team to improving internal systems, so Peasy can deliver the kind of service clients remember for the right reasons.

With a background across home loans, hospitality, tourism and events, Amanda brings a people-first mindset and a natural ability to stay calm when things get busy. She is passionate about creating an environment where the team feels supported, customers feel cared for and the business continues to grow with purpose.

Out of the office, Amanda loves spending time with family and values wellbeing, travel, culture and time to recharge. She enjoys staying active, reading, unwinding with a favourite show and sharing good food, good wine and plenty of laughter with the people closest to her.

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