Offset Home Loan

An offset loan allows the borrower to reduce the interest rate on a home loan. It involves a transaction account that holds deposited funds that can be used to lessen the balance of the home loan repayment.

The interest rate for this loan is determined on a daily basis and is generally higher in comparison to other loans.

An offset account can expedite home loan repayment so that you can easily get your money back or redraw the money that you invested. However it is important to ensure that regular deposits are made to avaoid forclosure of account. This may prove to be an issue of concern for those with an unsteady income.