Put your cheque and savings accounts to work on your mortgage.
Offsetting mortgages can reduce the amount of interest you pay1. They do this by letting you subtract, or offset, for the purposes of calculating interest, your cheque and savings account balances from the amount you still owe on your loan.
Here’s how it works
For and against
If you regularly have money in transaction or savings account you can save on interest and pay off your home loan faster and if you are fully offset you can pay no interest.
As the rate is floating it can go higher than fixed term rates and if the interest rate goes up, so will your repayments which could put a squeeze on your budget. Also, if you offset you don't earn credit interest on your savings.
- Lending and account opening criteria apply. An establishment and re-documentation fee may apply. A Low Equity or Low Doc interest rate premium may apply. Not available for business purposes or packaged offers. Full details, TotalMoney terms and conditions, and disclosure statement may be obtained free from any store or this website.