We all like saving money where we can, especially on big-ticket items like home loans. An offset account can help you save on the amount of interest you pay, and also cut the length of your home loan.
What is an offset account?
Put simply, it's a transaction account linked to your home loan. The balance of the account is offset against the balance of your home loan.
For example, if you have a home loan balance of $300,000 and have $30,000 in your offset account, you'll only pay interest on a home loan balance of $270,000.
This saves you money over time and helps to reduce the time it takes to pay off your loan, too. To get the best value from an offset account you need to maintain a decent balance and have the ability to make further contributions to the account over time.
Things to look out for:
If an offset account is a feature you want to take advantage of, it's definitely worth shopping around and taking note of the different inclusions and fees.
You'll want to check that the full value of your linked account is offset against your home loan, not just a portion of it. Look for home loans that feature 100% offset (or full offset) and you'll know that every dollar in your offset account is working hard to save you dollars.
Great Southern Bank offers Multi-Account Offset, so you can offset 100% of the combined balances of multiple Great Southern Bank everyday accounts* against your eligible home loan – shown in the example below.
To find out how much money you could save with Multi-Account Offset, take a look at our online calculator.
Eligible everyday accounts are Everyday, Everyday 55+, Everyday Business, Prime Access, Freedom Plus, Platinum Plus and Special Purpose accounts. A Mortgage Offset facility is not available on any account that has an overdraft facility.
The offset facility can only be established if all parties to the offset account are parties to the qualifying loan.
You must maintain a minimum balance of $500 in each offset account to obtain the benefit of the offset from that account. No credit interest will accrue to your offset account.
Customers can offset up to six (6) eligible everyday accounts against their qualifying home loan. The maximum number of accounts you can use as offset accounts on each qualifying loan is determined at GSB's discretion and may be subject to change.
Conditions, fees and charges apply. This is general information and does not take into account your objectives, financial situation or needs. Consider the appropriateness of the information, including the Terms & Conditions (T&Cs) booklet, before acting on it. The Financial Claims Scheme may apply to this product; refer to the T&Cs for more information.