Mortgage Offset Account
The Mortgage Offset Account allows your savings to be put toward the balance of your loan, letting you pay off your home loan quicker and reduce the amount of interest paid.
The Mortgage Offset Account is a savings account that can be linked to an eligible home or investment loan to help reduce the interest paid. This account is separate to your loan, and can be operated as an everyday day to day transactional account with flexible options available to access your funds.
The amount in the Mortgage Offset Account will be deducted from your daily loan balance1, reducing the interest payable on the loan. The more money you keep in your Mortgage Offset Account, the more interest you can save on your home loan allowing you to pay your home loan off quicker.
How it works – an example
If you have a $200,000 home loan (with an interest rate of 7% p.a.), you will pay about $14,000 in interest over one year. If you had $10,000 in a Mortgage Offset Account too, this will be subtracted from the $200,000 when calculating interest, so you would only pay interest on $190,000. This works out to be $13,300 in interest over a year, being a saving of $700.
Mortgage Offset Account Features and Benefits
Useful Links and Information
Full terms, conditions, fees and charges are available in our Product Guide and Fees and Charges booklets. These booklets are available upon request, can be downloaded from our website, and will be provided at the time of acquiring the product. Before acquiring the product you should consider if this product is appropriate for you.
The balance of the Mortgage Offset Account will only be applied to reduce the interest payable on an eligible loan for the days the loan balance is above $500.