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Discover how a single offset account can simplify your finances, save on interest and help you build wealth faster.
As a property investor, finding the right financial strategy can significantly boost your returns and help you manage debt efficiently. One powerful yet simple tool to consider is a single offset account linked to your loan.
At DPN we provide strategic financial structures designed to make your money work harder for you. Here's how using a single offset account can benefit you.
An offset account can be a game-changer when it comes to reducing interest on your mortgage. Every dollar you keep in your offset account reduces the balance of your loan that accrues interest.
Instead of earning minimal interest in a regular savings account and paying more in tax, your money works to cut down the interest on your investment loan or owner-occupied loan. Over time, this can save you thousands of dollars and help you pay off your loan faster, freeing up equity for future investments.
For example, let’s say you’ve got $50,000 sitting in your offset account. That $50,000 reduces the interest-bearing balance of your home loan by the same amount. Over the life of your loan, the savings could be even more substantial.
One of the most appealing benefits of using a single offset account is its simplicity. With all your income and expenses flowing in and out of one account, you’ll find it easier to keep track of your finances. This makes it easier to budget, monitor your spending and assess your overall financial position. There’s no need to juggle multiple accounts or spreadsheets, as everything is consolidated into one place.
From a tax perspective, the way you structure your finances matters. Interest on loans for investment purposes is generally tax-deductible, while interest on home loans is not. Using your offset account against your owner-occupied property ensures that you prioritise reducing non-deductible interest, which can further optimise your financial strategy.
With all your income and expenses flowing in and out of one account, you’ll find it easier to keep track of your finances.
Of course, it's always essential to consult your accountant or financial advisor to ensure that your tax and financial strategy is tailored to your specific needs.
At DPN, we go beyond offering competitive rates. We believe in providing smart, tailored strategies that maximise the potential of your portfolio. Our single offset account strategy is just one of the tools we use to help you pay down debt faster, access equity more efficiently, and achieve long-term success.
Speak to an expert DPN Mortgage Broker today to find out how we can help you build a smart, efficient financial structure that works for your property investment goals. Your wealth building journey starts with the right strategy.
Using an interest-free credit card for your expenses can extend your payment period, giving you up to 55 days without paying interest. This allows you to keep more money in your offset account for longer, further reducing the interest on your loan. Plus, you can benefit from reward points on your card, adding extra value to your spending.
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