Frequently asked: What is an offset account and how can it benefit me? An offset is an account linked to a home loan and is a method of putting savings to work by reducing interest. For example: A borrower has a $400,000 home loan and $40,000 in savings. By moving the savings into an offset account linked to this borrower’s home loan they would only pay interest against a balance of $360,000 (variable loan scenario). To the ATO, the borrower has not earned interest on the cash deposit, so it’s not included in their taxable income.
Posted on: Sun, 11 May 2014 23:47:20 +0000
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