Mortgage Offset

How offset mode works

Home Loan Interest is calculated on the outstanding balance of your linked home loan, less the balance of your main Everyday Options account plus any linked Sub-account balances (not in flexiRates).  

This means the more money you have in your Everyday Options account and sub-accounts the less interest you’ll pay on your home loan.

And because sub-account balances are included in the offset calculation (provided they’re not in flexiRates*), you can get a multi-offset benefit.

Offset mode in action

Example:

You have $100,000 owing on your Standard Variable home loan

You have an Everyday Options account with the following balances:

• Main account $2,000
• Total Sub-account balances $5,000 (of which $1,000 is locked away in a sub-account flexiRate).

When calculating your home loan interest, we’d add your Everyday Options account balances together i.e. $2,000 + $5,000 = $7,000 less the flexiRate balance of $1,000 = $6,000.

This is the multi-offset value that can then be subtracted from your $100,000 home loan when calculating interest. You’ll only pay interest on $94,000.

Every cent counts

There’s no minimum amount required in your Everyday Options account to benefit from offset, which means every dollar you have in your main account and sub-account balances (excluding flexiRates) can save you interest on your home loan.

Depositing your pay into your main Everyday Options account and using your sub-accounts for regular bills is one way to maximise this benefit with every cent you earn work harder for you reducing your home loan interest.

It’s important to remember that while your Everyday Options account is in offset mode you won’t earn interest on any  sub-account balances except where you have fixed them in a flexiRate. flexiRates are deposit funds fixed for a set period so they will earn you interest and are not counted in your offset balance

Click here for full details on our Everyday Options account.

Fees

A once off $75.00 Mortgage Offset Fee is charged to your linked loan account when your loan is not held in a Home Package Plus.

Example:

The table below illustrates three examples of how deposit balances in Everyday Options Accounts operate in offset mode and reduce the interest payable on a linked home loan.