Offset facility
- What is an Offset Facility?
- An offset facility is a transaction account, the balance of which offsets your home loan by 100%. It is a product that has been developed by QTCU for members with home or investment loans secured by residential property.
- How does an Offset Facility work?
- Your offset facility is actually a savings account called the ‘Mortgage Breaker Account’. The savings balance from your Mortgage Breaker account acts as a "virtual" loan payment. It is deducted from your home loan balance before interest is calculated, (on a daily basis) and offset occurs. However, with a Mortgage Breaker Account your savings remain a separate entity and are available on-call, should you ever need them.
- What kind of loan can I attach an offset facility to?
- Mortgage Breaker accounts are available with variable rate home and investment loans, secured residentially. The account must be in the same name as the loan.
- How can I save money using an offset facility?
- With the balance of your offset account, you will pay less interest on your home loan, and possibly own your home sooner. Even though the Mortgage Breaker account does not pay any interest on your savings, the amount you save in loan interest will exceed what you would earn in a regular savings account.
- Are there other benefits?
- Yes. The Mortgage Breaker account is flexible and convenient. Your funds are available on-call and can be accessed through any EFTPOS facility, ATMs, Tele-access, NetAccess, cheque books and over-the counter at any branch.
- How can I get maximum benefit from my offset facility?
- Having your pay deposited directly into the account then making gradual withdrawals will maximise the benefits. Remember that the higher the balance of your Mortgage Breaker Account, the greater the savings for you.
A Product Disclosure Statement (PDS) is available for this product and you should read the PDS before making any decisions about the product. As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on this advice, consider its appropriateness to your circumstances.
