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Variable rate, and some introductory fixed rate Home
Loans with a linked savings account. Interest is charged on a daily basis on
the net debit balance, i.e. the loan balance minus the savings account balance.
The key features of this type of loan include:
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A savings account that effectively earns you home loan rates of interest.
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A means to save thousands of dollars in home loan interest.
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The flexibility and convenience to pay extra and redraw at any time.
The best way to take full advantage of 100% Offset is to
have your salary and other income paid directly to the account. You may then
draw the funds you require as needed, remembering that every dollar remaining
in your 100% Offset account offsets your Home Loan balance, potentially saving
you thousands of dollars worth of interest over the life of your loan.
For example, if your home loan balance is $100,000 and you had $10,000 in your
100% Offset Savings Account, you would only be charged interest on the net
amount of $90,000.
Because you do not pay income tax on the funds in your 100% Offset account
(under current legislation) you may find it tax effective to deposit any spare
cash or nest egg savings that you may have.
We recommend talking to your Accountant or Financial Advisor for proper tax
advice on this matter.
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