Sydney Financial Group offers a financial product that was pioneered in Australia about 25 years ago, but is new the United States. This product combines a mortgage account with a checking account to help our customers pay off their mortgages faster than a traditional mortgage by saving on daily compounded interest.
They are headquartered in Provo, Utah, and are one of only a small handful of companies offering this product (we call it a Mortgage Checking Account) so far in the United States. We are named Sydney Financial Group since the concept for the Mortgage Checking Account was originated in Australia.
Here is an example of how it works:
Suppose an individual has a mortgage where they still owe $200,000. In addition, suppose that they receive a $5,000 paycheck at the beginning of each month. A typical person would deposit their paycheck in a checking account that earns 0% or maybe up to 1% interest.
Using Sydney Financial Group’s Mortgage Checking Account that combines a mortgage with a checking account, the person would deposit their $5,000 paycheck in against their mortgage dropping the balance to $195,000. As monthly expense occur, money is paid back out of the account and the balance at the end of the month is near $200,000 again. However, in the meantime, money was saved on the daily calculated interest of the mortgage (more towards the beginning of the month and less toward the end of the month as money was spent).
Over the life of the mortgage, this can save a substantial amount of interest.
For more information to learn more about Sydney Financial Group and the Mortgage Checking Account, go to www.sydneyfg.com.
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