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How does an offset account reduce interest?
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Simply deposit your salary into the 100% Offset account and any money in the100% Offset account is deducted from your loan balance before interest is calculated. Therefore any extra money in your transaction account saves you interest on your loan, thus shortening the term of your loan.
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Here's an example...
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If you have a $100,000 home loan and $5,000 in your 100% Offset account, you would only pay interest on a notional balance of $95,000. That’s $5,000 you don’t have to pay interest on! A 100% Offset account with Community First is different. For a start we allow this account to be used with our fixed rate home loans, unlike many other lenders in Australia!
It is also free. There is no monthly loan service fee associated with keeping a 100% Offset account.
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* Terms and conditions, fees and charges apply - details available on application. All loans subject to lending guidelines.
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