Benefits of using a single offset account

We recommend structuring your loans with an offset account linked to your owner-occupied property that all incoming and outgoing funds are channelled. 

Here are some key benefits to using a single offset:

Interest savings - every dollar in your offset account reduces the balance of your home loan that accrues interest. So, instead of earning minimal interest in a standard savings account, your savings work to reduce the interest on your loan, potentially saving you thousands over time.

Cash flow efficiency - by channelling all your income, including salary and investment rental income into the one offset account, you keep the loan balance lower for longer. This means you’re always minimising the interest charged on your mortgage. Even for short periods, the impact can be significant.

Simplicity - using one account for all income and expenses keeps your finances organised. You know exactly where your money is, and it simplifies budgeting since there’s only one account to monitor.

Tax strategy - the interest on loans used for investment purposes is generally tax-deductible, while interest on personal or owner-occupied home loans is not. Using the offset account on the owner-occupied loan ensures you reduce your personal, non-deductible interest first.

Of course, we always recommend you speak with your accountant or financial advisor to tailor your strategy to your needs and objectives. 

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