The premise of a multiple accounts offset mortgage isn’t as complicated as you might think. Instead of having one lump sum offset against your Gold Coast mortgage, with a multiple accounts offset mortgage you have many lump sums. These might be ISAs, savings accounts, current accounts or anything in between. As long as you have monies to offset, the mortgage will work. All the combined balances of all the accounts – and you can have many – will act as the amount offset. Then the more you offset the more security you have against your property, and the lower the rate of interest on your mortgage at the end of the month.
So you may have an ISA offset against the mortgage, and that amount shouldn’t change too much – savings accounts are usually left unattended for a long time. If anything, using savings as an offset against a multiple accounts offset mortgage will encourage you not to spend the sum, only to invest in it more – because the more that is in that savings account, the lower your rate of mortgage interest each month.
As well as savings accounts, you can attach your current accounts to your multiple accounts offset mortgage. This is a little more tricky to manage as current account balances move up and down during the month. For example at the start of the month your balance will be high as wages are paid in, but by the end of the month you may be down to almost zero. The best multiple accounts offset mortgage will compensate for that – balances of all the accounts connected to the mortgage are taken daily, so as long as you can keep money in your current accounts for as long as possible, you maximise your chances of having a lower mortgage bill at the end of the month. This can be done by making sure direct debits and bills leave at the end of the month – the more money you have offset against your multiple accounts offset mortgage through the month, the less you pay – it’s simple.
If you have multiple bank accounts with balances that could be added together to form a good basis for a multiple accounts offset mortgage, talk to your financial planner Melbourne. With a bit of planning and a little saving you could find that your multiple accounts offset mortgage makes you money month by month.