What is an offset?

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 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 $50,000 in your offset account and the balance of the linked variable loan account is $350,000, 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.  

Here are some important things to remember to ensure you are making the most of your offset home loan:

• An offset account must be linked to a variable interest rate account to receive offset benefits. It can only be linked to one variable interest rate home loan – it can’t be linked to multiple loan accounts.

• If your offset account is not linked to any home loan account, please contact us immediately.

• It’s not possible to have an offset account linked to a fixed rate account.

• If the funds in your offset account exceed the balance of the home loan account, interest is not paid on the excess and the excess amount does not offset any interest payable.