Do you want to pay your mortgage off sooner?

In an article published on realestate.com on 14 January 2025, Caroline Riches set out the simple act that can shave years off your mortgage.

Offset accounts offer significant financial benefits and can work for you 'every single day'. But not everyone knows how to maximise these gains, experts say.

Australia is only one of the few countries around the world that allows you to have an offset account.

Here are some tips set out in the article:

1. Get one – In a costs benefit analysis an offset account can reduce your mortgage terms by years for minimal fees;
2. Deposit as much money as you can – It is recommended that you have $20,000 – 30,000 in your offset to maximse the benefit. With an average mortgage of $600,000 you could save $120,000 in interest;
3. Withdraw as little as possible – You need to disciplined with your offset account. While you have easy access to the money in the account, if you deplete the funds you minimise the benefit;
4. Keep all your transactions in one place – if the mortgage is for an investment property, you can you the offset to pay all the expenses for your property and it makes it far easier come tax time;
5. Take your time to decide – You should always speak to a mortgage specialist and get the best package that suits you. Remember that nothing is permanent and if your situation changes, you can change your mortgage as well.