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Three ways to get more from your mortgage


When you’re juggling the costs of raising a family while saving for the future, it can be hard to imagine ever actually owning your home outright.

But that’s just what Macquarie Bank’s offset home loan package could offer. A smarter way to home ownership – without sacrificing the holidays or fun weekends that make up a lifetime of family memories.

“Young families often have a single or reduced income, just when expenses are at their highest,” explains Katrina Anderson of Sydney-based mortgage broker Sage Loan Services.

“For some of our clients, reduced disposable income is a real challenge, it feels like they are only just keeping their head above water. Then fear creeps in, because they also want to set aside enough for the kids’ education – or having another baby.”

The tension between paying for today’s expenses without ignoring tomorrow’s needs is undeniably stressful. But if you have a home loan, there are three simple ways you can get your money to work a little harder for you.


1. Protect your family's lifestyle today

The important first step is to make sure you’re paying the most competitive rate possible. With interest rates at an all-time low, there is no excuse for not shopping around.

Plus, if you’ve built up some equity in your home loan over the past few years, your loan to value ratio may have improved. This is the amount of your loan, as a percentage against the value of your property, and as it goes down your chance of a better rate goes up.

This is just simple math. Check the loan calculator to see how much you could save over the term of your loan with a slightly lower rate – and you’ll see how much difference it could make to your family’s cash flow.

Now with a
low rate

3.75% pa
Variable rate
4.00% pa
Comparison rate*
For new owner occupied offset home loans only

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2. Pay off your home loan sooner

Rather than pocket (and spend) what you save on repayments, put it straight into your offset account. If you keep paying this as well as your old repayment amount, you’ll pay your home loan off sooner – and save even more on interest over the life of the loan.

That’s if interest rates don’t change of course. But if (or when) they do, you’ll also have a buffer to ease the pain.


3. Add more offsets to control your budget

This is an important part of your strategy.

If you really do want to pay your home loan off sooner (and pay less interest), you shouldn’t just dip into that offset if you feel like booking a holiday, doing up the bathroom or paying off the credit card after a blow-out family Christmas. This can be very tempting when you can see those savings there, and they’re at call. But you need to set it, and then forget it’s there.

Macquarie offers multiple home loan offset accounts that all work together to reduce your home loan interest. You create up to 10 different offset accounts: set up one for holidays, one for Christmas gifts, one for renovations and one for future school fees.

“This way you still get the benefit of all your savings reducing the interest on your home loan, but also have the peace of mind you’re setting aside enough for future needs,” says Anderson.

“Plus, Macquarie’s banking app makes it easy. It gives you a quick snapshot of all your accounts, categorises your debit card expenses for you, and helps you stay on top of your finances.”

For example, you can use your debit MasterCard on your ‘short-term’ offset account to make it easier to track and manage your spending – rather than worrying about moving money around.

That means you can have a home loan and still have a family holiday. And also own that family home outright a little sooner.

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 Rate applies for new owner occupied loans when you borrow up to 70% of the property value with a principal and interest repayment variable rate basic home loan. Subject to change without notice.

* The comparison rates are based on a loan for $150,000 and a term of 25 years. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

Information and interest rates are current as at 13 July 2018 and are subject to change.

Fees & Charges

  • At the end of the fixed rate period, the interest rate will revert to the current standard discounted rates. Our Standard Variable rate and Standard Interest Only Variable rate are currently 5.36% pa and 5.75% pa respectively (variable and comparison*) for Basic owner occupied home loans. Our Investment Variable rate and Investment Interest Only Variable rate are 5.97% pa and 6.32% pa respectively (variable and comparison* for Basic investment home loans. You will be notified of the discount that applies to your rate prior to the end of your fixed rate period.
  • Fixed rate loans may be subject to significant break costs. Please refer to your loan contract and terms for details of break costs applicable
  • Fees and charges apply.

Unless stated otherwise, this information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL & Australian Credit Licence 237502 and does not take into account your objectives, financial situation or needs. Before making any financial investment decision or a decision about whether to acquire a credit or lending product, a person should obtain and review the terms and conditions relating to that product and also seek independent financial, legal and taxation advice. All applications are subject to Macquarie’s standard credit approval criteria.