Interest offset accounts
Own your home sooner with interest offset
An interest offset account can help you lower the interest cost on your eligible home loan. Essentially, any money sitting in your day-to-day transaction account counts towards 'offsetting' your home loan interest. Plus you can put money in or take money out. Pretty handy, right?
- Let’s say you have a $500,000 home loan, and $10,000 in your linked ‘fully offset’ Bank of Melbourne transaction account. Interest will only be charged on $490,000 of your home loan, plus you can access your $10,000 whenever you need to.
- Each day, when calculating interest, we offset the balance/s in your linked offset account/s against the amount you owe on your home loan.
- Interest is calculated daily and charged monthly only on the net amount (your loan balance less your transaction account balance for that day). You can link up to 99 Bank of Melbourne offset accounts, and know that every dollar offsets your home loan’s interest.