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Offset Account Frequently Ask Questions

If you haven’t used a finance broker before, you probably have some questions. Let’s help you get some answers.

Do offset accounts earn interest?

As the funds in your offset account are used to offset the interest on your home loan, offset accounts do not earn interest.

Can we withdraw from an offset account?

An offset account is a transactional account which means you are able to make both deposits and withdrawals.

What happens if I have more money in my offset account?

Typically, lenders will only offset the interest on funds up to your home loan balance. Any funds exceeding your home loan balance will not be offset against your home loan and will not earn interest.

If your offset account does contain funds above your current loan balance, lenders usually recommend placing these extra funds in another savings account such as high-interest savings accounts.

If you’re interested in an offset account for your home loan or want to know how to use your current offset account more effectively, contact our experienced mortgage brokers today!