100% Offset Home Loans

100% Offset Home Loans involve a variable rate, and some introductory fixed rate Home Loans with a linked savings account. Interest is charged on a daily basis on the net debit balance, i.e. the loan balance minus the savings account balance. The key features of the 100% Offset Home Loan include:

• A savings account that effectively earns you home loan rates of interest.
• A means to save thousands of dollars in home loan interest.
• The flexibility and convenience to pay extra and redraw at any time.

The best way to take full advantage of 100% Offset Home Loan is to have your salary and other income paid directly to the account. You may then draw the funds you require as needed, remembering that every dollar remaining in your 100% Offset account offsets your Home Loan balance, potentially saving you thousands of dollars worth of interest over the life of your loan.

For example, if your home loan balance is $100,000 and you had $10,000 in your 100% Offset Savings Account, you would only be charged interest on the net amount of $90,000.

Because you do not pay income tax on the funds in your 100% Offset account (under current legislation) you may find it tax effective to deposit any spare cash or nest egg savings that you may have.

We recommend talking to your Accountant or Financial Advisor for proper tax advice on this matter.

Contact us today to discuss the right 100% Offset Home Loan to suit your needs.