How does an offset account work?
Offset accounts are an easy way to save some coin when repaying your mortgage.
An offset account is a transaction account linked to your home loan designed to lower the amount of interest charged on your loan.
The balance is 'offset' against what you owe on your home loan, meaning you're only charged interest on your home loan minus the total amount in your offset account.
Let’s say you have a mortgage of $200,000 and $20,000 in your linked offset account. That means you’ll only be charged interest on $180,000.
This simple set up can potentially save you hundreds or even thousands in interest repayments and help you repay your loan even quicker.