A Mortgage Offset facility allows you to accumulate savings in a specific savings account and use that account balance to reduce interest on your Home Loan.
How it works:
|Let’s say your Mortgage Offset Home Loan has a balance of…||$100,000|
|and your Mortgage Offset Savings has an account balance of…||$10,000|
|then the amount we use to calculate interest on your Mortgage Offset home loan is:||$90,000|
The Mortgage Offset Savings account does not earn interest, instead an ‘offset figure’ is calculated on balances of $5,000 or more and this is used to reduce interest payable on the loan. Mortgage Offset Savings account may be accessed at any time by over the counter transactions, periodical payments, direct credits, Internet and Phone Banking.
- Reduce the interest on your loan
- Reduce the time taken to pay off your loan
- Potential to offer tax savings as no interest is paid on Mortgage Offset Savings account
- Consolidate your loans into one account for greater convenience
- Deposit your salary automatically into your Mortgage Offset Savings account
- Savings available at call
- 100% Offset ($5,000 minimum balance required for offset to apply).