BANK027 Are offset accounts always the best option for home loans? (645 words)

Not sure whether an offset account is the best choice for your mortgage structure? The details provided in this article will help you decide.

Mortgage offset accounts have steadily increased in popularity since they were first introduced in Australia in the late 1980s. A recent study by the University of Sydney found that around 40% of Australian mortgage holders use offset accounts. Although they are obviously financially beneficial in many cases, their widespread acceptance does not mean that they are automatically the right choice for everyone. It’s worth taking a close look at the facts.

A simple definition of mortgage offset accounts

A mortgage offset account is a transaction or savings account linked to a mortgage held with the same financial institution.