Personal

Mortgage Offset Facility

What is a Mortgage Offset Facility?
A Mortgage Offset Facility is having a savings account linked to a loan account. No interest is paid to the Mortgage Offset account, but less interest is charged to your loan.

Reduce Your Tax Bill
Savings interest is taxable, but because your Mortgage Offset account balance is used instead to reduce your loan interest, no tax is payable*.

Interest at your Loan Rate
The nominal interest rate on your Mortgage Offset account is the same as that applied to your loan account. This is a great rate and an effective way to invest money in your own home. This rate is much higher than you could earn on most savings accounts and the interest rate moves with your loan account rate. This ensures that you always get the maximum benefit of every dollar of your savings in your Mortgage Offset account.

CashCard and Cheque Book Access
The Mortgage Offset account is like any other savings account, offering you a cheque book and CashCard access to over 19,500 ATMs and 440,000 EFTPOS terminals nationwide. Have your salary paid directly into your Mortgage Offset account and get your money working for you straight away.

Own Your Home Sooner
Every day, the balance of your Mortgage Offset Account, whether it’s $50 or $5,000, is deducted from the balance of your home loan before we calculate your loan interest. The compound effect of the reduced interest charges can slice years off the term of your loan.

* Customers should obtain independent tax advice if relying on this product for tax purposes.