Mortgage offset accounts are getting more popular
ING Direct said the proportion of new mortgage applicants applying for an offset account doubled from 20 per cent in 2011 to 40 per cent in 2014.
Borrowers can offset mortgage debt with their savings to reduce their interest, while maintaining easy access to their money.
For a borrower with a $300,000 home loan and $10,000 in their offset transaction account will be charged interest on $290,000.
ME Bank reported that average balances in offset accounts have climbed from $15,800 to $17,700 over the last 12 months.
Source: Herald Sun