| In the case of an offset mortgage, your
| |
| | $100,000 and have savings in your offset
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| main bank current account and/or savings
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| | account of $25,000, you will pay interest
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| accounts are linked to your mortgage.
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| | only on $75,000. As a consequence, when
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| Each month, the amount you owe on your
| |
| | your current account and savings balances
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| mortgage is reduced by the amount in
| |
| | go up, you pay less on your mortgage. As
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| these accounts before working out the
| |
| | they go down, you pay more.This type of
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| interest due on the loan. For instance,
| |
| | mortgage can also be tax-efficient if you
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| if you have an interest-only mortgage of
| |
| | pay tax on your savings.
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