What is an escrow account?

When you get a home loan, you'll probably be asked to put money into an escrow account to guarantee the lender that the ongoing expenses of owning the property will be paid, specifically taxes and insurance. You'll pay a lump sum into the escrow account at closing (also known as your ‘prepaids’), and add to it further with each of your monthly home loan payments.

Updated on: 13/07/2022