Mortgage Offset Account

A Mortgage Offset Account is a linked transaction account to your home loan. Interest on your mortgage is calculated daily, and is offset by any cash you have in your offset account. For example, if you had a mortgage of $300,000, and $100,000 in a linked offset account, your bank would calculate your interest charge as if your mortgage balance was $200,000. This calculation happens daily, which is why the more cash you have in offset the more often, the bigger the savings.

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