Our Mortgage Offset Account is a special type of savings account which gives members with a home or investment loan the opportunity to reduce:

• The time taken to pay off their loan
• The amount of interest paid on their loan
• The amount of income tax they pay

A Mortgage Offset Account is only available to members who have a variable rate home, interest only or investment loan. It cannot be used to offset interest on the All-In-One Account, business and commercial loans, or non-mortgage loans.

Funds can be deposited into the account and withdrawn on demand via over-the-counter cash withdrawals, purchases on VISA, ATMs, member cheque and EFTPOS. Fees may apply for these services, refer to our fees and charges booklet.

Unlike a normal savings account, however, there is no interest paid on savings. Instead an “offset figure” is calculated on balances of $500 or more and this is used to reduce the interest payable on the loan.

With a Mortgage Offset Account the loan is “split” into two portions – the first equals the balance of the Mortgage Offset Account and the second equals the remainder of the loan. A reduced rate of interest is charged on the first portion of the loan and the second portion is charged at the full loan interest rate. The reduced interest is calculated by subtracting the offset interest rate from the interest rate being charged on the loan.

It is important to understand that any funds held in Mortgage Offset Accounts over and above the outstanding loan balance will not receive any interest benefit.

 

If you would like more information or wish to open a Mortgage Offset Account, email us now, call us on 13 25 85 or visit a Branch.