Скачать или смотреть 💸 Offset accounts: smart money move or hidden rip-off?

A new study says they could be making the rich richer… What do you think? 👇

40% of Aussie mortgages have offset accounts - but are they a rip-off?

A new University of Sydney study has found offset accounts might be reinforcing wealth inequality in Australia - essentially because they tend to cost the same across the board but benefit richer homeowners far more.

If you’re not sure how offset accounts work, they’re essentially transaction accounts, but the money kept in them ‘offsets’ a mortgage borrower’s outstanding debt. Say you keep $50,000 in an offset account over the life of your loan, you’d essentially pay interest on $550,000 instead of $600,000, which could help save nearly $140,000 in interest and shave five years off a 30 year home loan.

It’s a tempting prospect, leading plenty of home loan holders to have them, and that’s kind of the problem.

As the research found, many might not realise any savings by having an offset account, especially after factoring in extra fees or higher rates banks and lenders often charge for home loans with offsets.

Those typically poised to benefit the most from offset accounts are people with high incomes and large mortgage debts. Homeowners with smaller mortgages and less free cash might miss out on the bulk of the benefits.

That said, plenty of people I speak to love their offset accounts. Do you? Or would you be better off without one? Let me know in the comments!