By opening a Geelong Bank Mortgage Offset Account and linking this account to your Geelong Bank Home Loan, you can use your savings to help reduce the amount of interest payable on your home loan. The balance of your Mortgage Offset Account is 100% offset against your loan balance when interest is calculated.
Here’s an example of how it works;
Geelong Bank Home Loan balance: $100,000
Geelong Bank Mortgage Offset Account balance: $ 10,000
Loan interest calculated on: $ 90,000 (home loan balance less offset account balance)
As you can see, having an Offset Account reduces the amount of interest you pay. Your savings in the Mortgage Offset Account are accessible through Phone and Internet Banking.
If you are using the loan for investment purposes, an offset account can be a better option to using a redraw facility. An investor can reduce their loan’s tax deductibility if an amount is redrawn from the loan that isn’t for investment purposes. If your loan is for investment purposes, talk to a tax adviser to work out which option is best for you.
Please Note: The minimum transaction on the Mortgage Offset account is $250.