Offset Account
An offset account is a transaction account linked to a home loan tht helps reduce the interest charged.
Quick Reference:
Loan Feature. Reduces Interest. Flexible access to funds.
Expanded Explanation:
Money kept in an offset account counts against your mortgage when calcualting interest. For example, if you owe $100,000 on your home loan and have $30,000 in an offset account then you will only pay interest on the $70,000. Offset accounts are common in Australia and can save thousands over the life of a loan. They’re particularly useful for investors wanting to reduce interest costs while keeping funds accessible.