Offset Account

If you want to pay off your mortgage sooner, a home loan with an offset facility can be a quick and simple solution.

How it works

A mortgage-offset account is simply a saving account linked to your loan account. The balance in the savings account is offset against that owing on the mortgage.

Types of offset accounts

EXAMPLE:

Peter and Jane have $100,000 mortgage and $10,000 in a linked 100 per cent offset account.

Repayments continue to be made on the entire $100,000 principal and applicable interest.

While savings in the offset account are actively working to reduce the loan, repayments are working more effectively to reduce both the principal and interest it attracts.

Over time, savings in your offset account can help to reduce the loan principal, allowing you to pay off your loan sooner or build up equity. For further explanation, call us today.