Yes, this is what an offset facility on your home loan can do.
An offset facility allows you to use your savings to shave years off your mortgage and reduce your interest. But unlike making additional repayments, you can access these savings at any time and use the money the same as an everyday transaction account.
It works like this. Say you have an $800,000 mortgage, but you have $50,000 in savings.
By putting the savings into an offset account, interest is only calculated on the difference of $750,000.
To explain more about how to most effectively use an offset account and get the most benefit, we’ve put together this helpful video.
And of course, your Shore Financial broker is always on hand to explain how an offset loan works and if it is the most suitable loan product for your individual financial circumstances and goals.