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90 Marine Terrace Fremantle, WA, 6160

Do you really need an offset account?

Many people, incorrectly, think they need an offset account. 

I’ve discussed this in a lengthy blog post previously but I also wanted to say again, that unless you have a specific purpose to the offset being there, or for its use, do you need it?

Borrowers usually pay a higher rate, plus, especially with major banks, an annual fee. 

Why add unnecessary extra cost to the loan? 

  • You need an offset account for business cash – cool
  • You need an offset account for management of multiple incomes or properties – cool
  • You have a plan involving future tax-deductibility or retention of the loan limit – cool
  • Most other reasons – not cool

My recommendation to you is to keep it low cost, low fee and simple, i.e. a basic loan. 

There are a few key points to this you must remember – the main one being to make sure you’ve got the ability to redraw prepaid funds and do so without penalty. 

You can still organise a neat, supercharged repayment structure around this too.

I’ve got a smorgasbord of basic loan options from the 32 lenders we are accredited with. 

To make the switch and start saving, make sure to request a quick 10-minute phone appointment with me asap. 


Brodie Brown

Professional Mortgage Broker