An offset account is an everyday bank account that is linked to your variable home loan account, with the following features and benefits:
- It helps to reduce the amount of interest you pay over the life of your loan
- You can transfer money and make payments online
- A debit card for purchases, payments, and ATM withdrawals
The offset account feature is available only on the Offset Home Loan product.
The balance in this account is offset against the balance of the linked home loan account, reducing your monthly interest charges. It is important to note that an offset account cannot be linked to or offset against multiple loan accounts.
For example, if you have $100,000 in your offset account and the balance of the linked variable loan account is $400,000, you’ll only be charged interest on $300,000.
It is important to note that if your offset account balance exceeds your home loan account balance, you won’t be paid interest on the excess amount. This excess amount also is not offsetting any interest payable on your home loan account.