Gateway’s 100% Loan Offset Account is a great way to reduce the interest on your variable home loan, whilst still giving you the flexibility of 24/7 access to your funds when you need them.
Working as a transaction account linked to your home loan, the Gateway 100% Loan Offset Account allows you to make deposits or withdrawals as you would with a regular transaction account, however giving you the added benefit of making your money work harder for you and saving you money on your home loan.
Our 100% Loan Offset Account can reduce interest costs on your variable home loan and help you pay off your loan sooner.
An offset account is a transaction account which is linked to your variable home loan that offsets the balance in the transaction account against the balance of your home loan.
For example, if your home loan account has a balance of $400,000 and your offset account balance is $25,000, you will only be paying interest on $375,000.
While your interest payable reduces, your minimum repayment doesn’t change – so more of your repayment is going toward the principle amount, not to interest. As you’re paying down the principal amount of the loan faster, this can reduce the length of your loan and the total amount of interest you need to pay.
Maximise your offset account by having your salary deposited into your account every pay day. It doesn’t matter if you have thousands of dollars or only a small amount saved - every dollar in your offset account reduces the interest you’ll pay on your home loan.
As well as offsetting your home loan balance, an offset account offers all the features and flexibility you’d expect from a transaction account.
A linked Gateway Visa Eco Debit Card enables you to access your funds when and where you need them. Your money isn’t locked away or difficult to access, as it might be if you made extra repayments instead of utilizing an offset account. As it functions like a regular transactional account, you can use your Offset account and Visa Debit Card to shop online, instore or pay for your subscriptions like Netflix and Spotify.
You can also manage your money with complete visibility and make payments through our Gateway 2go mobile app and Online Banking.
Both Offset and Redraw help reduce the amount of interest you pay on your home loan and enable you to pay off your home loan faster. However, if you’re looking for flexibility and the ability to transact and access your money quickly and easily when you need it, an Offset account could be a better option for you.
Redraw, on the other hand, may be the better option when you have a larger sum to pay down your home loan which may only need to access in case of an emergency.
Savings & Bank Accounts |
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|---|---|
| Monthly Fee : | $0 |
| Annual Fee : | $0 |
| Minimum Amount : | $0 |
| Funds Available : | At call |
| Online & Phone Banking : | Yes |
| Debit Card : | Yes |
| Branch Access : | Yes |
| BPAY® : | Yes |
| Periodic Payments : | Yes |
