Mortgage Offset Account
Queensland Professional Credit Union's Mortgage Offset Account can cut years off your loan term and save you thousands of dollars in repayments!
What is a Mortgage Offset Account?
A Mortgage Offset Account is a savings account linked to your loan account, which allows you to offset your savings, salary and other cash resources against your home or investment loan.
How does it work?
The total balance in your Mortgage Offset Account is offset against the balance of your loan, and interest is then calculated on the remaining net amount of your home loan. For example, if you had a loan of $300,000 and $20,000 in your Mortgage Offset Account, you will only pay interest on $280,000.
How will a Mortgage Offset Account Benefit me?
- Pay off your mortgage sooner
Even though you are only paying interest on the $280,000, your monthly repayments are calculated on the original amount of $300,000. This means you will be making extra repayments, which will clear your debt faster!
Whilst effectively you are earning interest on your savings account at the same rate as your loan account interest, there will be no interest posted to the Mortgage Offset Savings Account, and therefore no interest to declare on your tax return.
- Make your savings work for you
The rate of tax-free interest you earn is likely to be higher than the rate for a savings account or term deposit with another financial institution. So if you have funds elsewhere, and a home or investment loan with us, transfer the funds into a Mortgage Offset Account to cut years off your loan term and save thousands of dollars in repayments.
- Flexibility and convenience
The Mortgage Offset Account works in exactly the same way as your S1 Savings Account. You can pay bills and transfer money in and out of the account at any time using our full range of banking facilities and there are no minimum balance requirements.
If you currently have advance funds on your home or investment loan, transfer them into a Mortgage Offset Account to have instant access to your savings- without having to fill out redraw forms.
What is the interest rate I will earn on my savings?
Interest is calculated and offset at the rate applicable to your home or investment loan.
Are there any fees and charges?
The Mortgage Offset Account has the same standard fees and charges as those applying to an S1 Savings Account. Click here for our current fees and charges.
There are no additional fees and charges for having a Mortgage Offset Account.
How do I apply for a Mortgage Offset Account?
1. Print and complete the Mortgage Offset Account Application Form:
Mortgage Offset Account Application (PDF)
2. Fax the completed form to (07) 3114 5095;
Mail the form to PO Box 12140 George Street, QLD 4003;
Or visit our Head Office at Level 1, 85 George Street Brisbane.
Who do I contact for more information?
You can contact our loans department directly on (07) 3114 5099, or if you are calling from outside Brisbane, phone 1800 172 054.
Alternatively, you can email contact@qldprofcu.com.au and a member of our loans department will respond to your query as soon as possible.
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