It is not always easy to make the decision to choose an offset mortgage because in a lot of cases, the difference may not be as much as you’d like. However, if your mortgage is a high amount when in comparison to your savings, then it is best to go for an offset mortgage as there is a good chance the decrease in the mortgage payment will be quite drastic when you offset it. The best way to figure this out is to consult your lender and an offset mortgage provider before making the decision and be sure to review the interest rates so that you can know exactly how much you will be saving. Moreover, with the offset mortgage, you will save in taxes so there is an added benefit in that manner.
With an offset mortgage, your monthly expenses will be lowered significantly and you have more freedom to spend. Therefore, the best time to pick an offset mortgage is when you know that you will need money in hand in the near future. However, make sure that you do not spend the offset amount, if your lender allows, as this might be a violation of your offset agreement.