Offset Account is a #SavingAccount or #TransactionAccount linked to your Home Loan account. The account’s balance is ” offset” daily against your home loan balance.
You are only get #interest charged on the difference between the total Loan Balance and the Offset amount. Which means you pay less interest over the life of your loan.
Example: If you have a Loan of $350,000, with $150,000 in Offset account you may only pay Interest on $200,000 of your balance.
Some benefits of having an offset account:
✔ Offset account hold any Saving you have.
✔ Offset account may have Low or No account keeping fees.
✔ Money in offset account is Accessible. You can withdraw any time.
✔ Offset account require self-discipline to save money instead of spending it.
Talk to your Mortgage Broker for which product is right for you.