Offset accounts are a useful way of helping to reduce the interest you pay on a mortgage, without tying up your cash, but are they counted as an asset?
Can you tell me if money in an offset account against the mortgage on our family home is counted as an asset? We plan to use some of that money when our super runs out instead of starting a reverse mortgage.
A. Any money held in an offset account will be classed as an asset as you can access this money at anytime and although it doesn’t earn interest in the traditional sense, it does reduce the interest you pay on your mortgage.
You may wish to review your financial plans with an independent financial advisor before making a claim for the Age Pension as there may be better ways to structure your assets and liabilities.