Mortgage Offset Account
A mortgage offset account can help you save interest and pay off your loan sooner. This option is available on the Queenslanders Ultimate Home Loan and The Original Home Loan.
What is it?
Mortgage offset is simply a savings account linked to your loan. Instead of being paid interest on your savings, the balance of the offset account is deducted from the balance of the loan account prior to calculating interest on the loan.
How does it work?
We’ll say, for example, that you have a $100,000 mortgage and $10,000 savings in a linked offset account.
- The $10,000 offset account balance is deducted from the loan balance to calculate interest on the loan each day.
- As a result, interest on the loan is calculated on the net balance of $90,000 rather than the full $100,000 loan balance.
- By maintaining an offset balance, you will be charged less interest each month.
- Your normal repayments must continue to be made, but more of the repayments go toward reducing the principal as you will be paying less interest.
- Over time, savings in your offset account can help to pay down the principal at a faster rate, allowing you to pay off your loan sooner.
What are the account features?
- Choose a rediCARD or Visa Debit card to access funds via EFTPOS and ATMs.
- Pay bills with BPay.
- Add a cheque book.
- Access mobile, internet and phone banking.
- Transact at any branch of Queenslanders Credit Union.
What else do I need to know?
- You can link up to 9 offset accounts to your loan.
- Money saved in your mortgage offset account does not earn any interest. Instead, the balance is offset from the loan when interest is calculated.
- 100% offset is allowed for the total balances of linked accounts. However, you cannot offset more than the balance of your loan.
- Your mortgage offset account will convert to an Action Account once your home loan has been repaid in full.
Refer to the Summary of Accounts and Schedule of Fees and Charges for more information.