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Our Home Loan Offset account is a convenient way to save yourself money on your home loan.
- Money is readily available.
- The interest you save on your loan can be greater than interest you earn in a regular savings account.
- It’s a day-to-day transactional account with convenient card access, including digital banking and access to our award-winning app.
First, to have everything run super smoothly, you’ll need to have the facility set up by your home loan consultant. Or contact your nearest branch or our Contact Centre on 1800 033 139 to arrange. Once your home loan is linked to the home loan offset account, simply make a deposit. You can choose to add a Visa Debit card to your account for easy access. However, try to maximise every dollar and keep as much money in the home loan offset account as possible.
You can also have your salary, or other deposits, credited straight to the home loan offset account. That way, you get the immediate benefit of saving on your home loan interest.
Every dollar you have in your linked Home Loan Offset account saves you interest every day it’s there. Even maintaining a balance of a few hundred dollars can save thousands in interest.
Your home loan interest is worked out each day, calculated on the balance of your loan (and then charged monthly).
The Home Loan Offset account works by using 100% of the balance to ‘offset’ or effectively reduce the portion of your home loan accruing interest. For example, if your Defence Bank home loan had a balance of $350,000 with $50,000 linked to our Home Loan Offset account, you would only pay interest on $300,000 of your loan balance.
The Home Loan Offset account can be linked to selected home loans with variable interest rates, including construction loans.
An offset facility is not available during a fixed-rate period.