An offset account links a savings account to your variable rate home loan, so you can use the money in your account to offset your loan balance.
How do I set up 100% offset?
You can generally only get offset on variable loans, or on the variable part of your split (part fixed, part variable) loan.
If your home loan is eligible, it's easy to link a new or existing account.
If you link an existing account, your account number and the payments you already have set up won’t change.
Options if your loan doesn't offer 100% offset
If you have a fixed rate home loan, your options may be limited.
At the end of your fixed rate period, there are two possible paths.
Your loan will shift onto a variable interest rate, or you’ll have the option of splitting it into fixed and variable parts.
This is the time to think about setting up a 100% offset account.
When offset might not be right for you
While offset can be a convenient way to save yourself some money, making extra repayments can be a better option in some circumstances.
For example:
• If you want to increase the equity in your home
• If you want to reduce your loan repayments
• If you want the freedom to redraw when you’re ahead on payments.
Want to see if you are eligible for an offset account?
Contact us @ propertyloans@realrenta.com and we will arrange for a lending specialist from our trusted finance partner to contact you.
Marlene Liontis
Tuesday, 29 January 2019
