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Aussies are using a simple money move to save thousands already according to one of Australia\u2019s biggest banks.<\/p>\n
Insider figures show more Aussie home loan borrowers are turning to a simple strategy to save thousands as the Reserve Bank moves to lock in rates for summer.<\/p>\n
National Australia Bank executive for home lending, Denton Pugh, reveals below how home loan borrowers are shifting their finances around to take advantage of tools available to them to cut costs.<\/p>\n
MORE: 178pc rise: Lady Gaga sparks Aus frenzy <\/a><\/p>\n Up $136k in a year: House price surges as Qld booms<\/a><\/p>\n NAB Home Lending Executive Denton Pugh.<\/p>\n By Denton Pugh<\/p>\n Offset accounts have long been valued for their ability to reduce the interest charged on a home loan. Every dollar in an offset account works to lower your interest bill and helps you pay off your loan faster.<\/p>\n That means you can pay off your mortgage faster and save big.<\/p>\n But it\u2019s not just about saving on interest. Offset accounts offer flexibility \u2013 whether you\u2019re planning for a family holiday, setting aside funds for school fees, or building an emergency buffer, being able to \u201cbucket\u201d your money for different goals can make managing finances simpler.<\/p>\n Some lenders even let you have multiple offset accounts linked to one loan, so you can \u201cbucket\u201d your money for different goals while still cutting interest.<\/p>\n MORE: \u2018Unbelievable\u2019: Man\u2019s 20-day Aussie lawn causes stir<\/a><\/p>\n From $93k to $4.75m: Departing radio stars\u2019 property empires<\/a><\/p>\n Borrowers put $14.1 billion in extra repayments into their mortgages in the September quarter. Picture: Brendon Thorne\/Getty Images.<\/p>\n We\u2019ve seen a real shift in how customers use their offsets. By separating savings for different goals, people are finding it easier to stick to budgets and avoid dipping into funds set aside for important milestones. It\u2019s a small change that can make a big difference over time.<\/p>\n And Australians are taking advantage. Borrowers tipped a record $14.1 billion in extra repayments into loans in the September quarter.<\/p>\n The Reserve Bank says households are also building buffers through offset and redraw accounts. More than 80% of NAB customers kept repayments steady after rate hikes, putting themselves in a strong position to pay down debt faster.<\/p>\n MORE: Aus housing fail: Tankers forced to truck out sewer waste daily<\/a><\/p>\n<\/p>\n
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