Please select from the list below to find out more about the
different loan types.
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100% offset account |
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| A 100% offset account is a
savings account linked to a loan account. No interest is paid
to the offset account but instead the balance of your offset
account is deducted from your loan account before the interest
on your home loan is calculated. Therefore less interest is
charged to your loan. |
| Advantages |
- Savings interest is taxable, but because your offset
account balance is used instead to reduce your loan
interest, no tax is payable, so you are effectively reducing
your tax bill.
- The interest rate on your offset account is the same as
that applied to your loan account. This is a great rate and
is much higher than you could earn on most savings accounts.
The interest rate moves with your loan account rate ensuring
you get maximum benefit from every dollar in your offset
account.
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| Disadvantages |
- You may have higher monthly fees attached to the
account.
- You may need a minimum balance in the account.
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