What are the benefits of having a Home Loan with an offset feature? How does it work?
An offset feature lets you link your transaction account to your home loan. The funds in your transaction account are offset against your home loan balance and you are only charged interest on the net balance of the two accounts. What that means is the funds in your transaction account work to reduce the interest charged on your home loan.
For example, if your home loan balance is $400,000 and your linked Everyday Mortgage Offset Account balance is $50,000, the interest calculated on your home loan for that day will be on the net balance of $350,000. This will you help you save money and pay your home loan off sooner.
Our Offset Account combines all the benefits of our Everyday Account while providing the benefits of a 100% mortgage offset.
Check out which of our home loan options you can get an offset account with on our Compare Home Loans page.
For more information, give us a call on 13 1905 or drop into an RACQ Bank branch.