A 100% offset account for a home loan enables you to pay off your loan sooner, and still have access to a lump sum of your savings when you need them.

An offset account is a regular savings account that has ATM, cheque book and internet access, which is linked to your home loan when the loan is established. The interest on your home loan is calculated on the balance of your loan less the savings in your offset account, thereby reducing the interest that you pay.

Many borrowers in an effort to pay off their loans quicker deposit their extra cash into their home loan. Importantly though, not all home loans allow you to redraw those extra payments if you have urgent needs for cash.

An offset account is the most effective way to reduce your interest, and give you unrestricted access to your cash when you need it.

If you would like to know more, or discuss the conditions of your current loan, please don’t hesitate to give me a call.

Patricia Williams is a credit representative (400458) of BLSSA Pty Ltd ACN 117 651 760 (Australian Credit Licence 391237).