A flexible mortgage, also known as an ‘all-in-one’ or ‘offset’ mortgage, is a home loan that allows you to make extra repayments and then redraw those funds if needed. It often combines your home loan, transaction accounts, and savings into a single facility.
These loans offer several benefits that provide financial flexibility:
An offset account is a powerful tool. For example, if you owe $300,000 on your mortgage and have $50,000 in your linked offset account, interest is only calculated on the difference ($250,000). This can significantly reduce your total interest paid over the life of the loan.
Flexible mortgages are ideal for individuals or families who want to:
While beneficial, some borrowers find flexible mortgages have slightly higher interest rates compared to basic variable-rate loans. It’s essential to compare the overall cost, including fees and interest rates, to ensure it suits your financial situation and long-term goals.
It’s best for those who can make extra repayments and want easy access to those funds, or those who benefit greatly from an offset account.
Some lenders may charge annual fees or have slightly higher interest rates. Always check the full terms and conditions.
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