Even if you’ve had the same type of mortgage for years, it is equally, if not more important to know and understand the differences in mortgage types as it could be costing you thousands in interest, fees, and charges – without you even knowing it!
Luckily, with the right knowledge and team behind you, it’s not too difficult to reduce, or eliminate, these unnecessary costs.
Your life, family, and income situation will likely change during the term of your mortgage, so it is important to review it regularly, and it may even be beneficial to refinance your mortgage a number of times before it is fully paid off.
Here’s the second part of the common types of mortgages:
Offset Account
A very important feature to know about is the offset account. Simply put, it’s a savings account attached to your mortgage. The key difference? The balance in this account is mirrored and treated as if it were sitting in the mortgage account.
The loan balance minus the offset balance is calculated daily and charged monthly, so if you consistently have balance in the offset, you will be charged with less interest each month.
Offset accounts aren’t usually available with basic or fixed-rate loans, but it is always best to speak with an experienced professional as there is always a chance.
Package Deal
A variation of the standard variable rate loan is what is often called an ‘All-in-one’ or ‘Advantage’ package offer. This is especially useful if you use a credit card, offset account, and a transactional account.
By paying an additional annual fee of around $400, you can receive a discount on your rate of up to 0.9%. Taking this into account could be what pushes it into the lead for your situation.
Whether you have a current mortgage or are looking to get one, speak to the friendly and experienced team here at Glass Financial.
