Offset Account

It’s an account that offsets the balance in that account against the balance of your home loan. This means you pay less interest on your home loan. Over time these savings can really add up and also reduce the time it takes to pay off your loan.

For example, if you have a home loan balance of $500,000 and have $10,000 in your offset account you’ll only pay interest on a home loan balance of $490,000.

Because home loan interest is calculated daily, if your offset account offers you 100% offset, every single cent in your offset account can reduce your home loan interest, every single day.