STANDARD VARIABLE RATE HOME LOAN WITH OFFSET A/C
A Standard Variable Rate Home Loan with an offset a/c is a popular option for people looking to maximise the use of their money by utilising a savings a/c to offset their home loan interest each month. Each day the lender will calculate interest on the loan balance less any funds in the offset a/c – calculating interest on the net balance. At the end of the month, the interest costs are charged to the loan, with the normal Principal and Interest repayment being made. This will result in an additional principal reduction to the loan (depending on the amount of money in the offset a/c over the month).
These loans are full of features including free online redraw and most are structured under a Package. The interest rate is variable so can move up and down with the market, but this does give you the flexibility to make unlimited additional repayments.
Before making a decision though, you need to discuss your options with a professional. Following an analysis of your situation, we will discuss the features of the many Loan Types available and match a solution that meets your requirements and objectives – see our Our Process.