Mortgage Offset usually means the borrower has a loan account linked to a deposit account and the financial institution only calculates interest on the amount equal to the outstanding balance of a borrowers home loan less the credit balance that day in the deposit account(s) linked to the loan. This reduces the loan term allowing the borrower to repay the loan sooner.

Mortgage Offset Loans are suited to people who wish to pay off their home loan faster and generally have a high level of savings that they wish to retain 'at a call' while using these funds to reduce the interest they pay, and own their home sooner. With a mortgage offset loan the borrowers do not pay income tax on interest earned on savings and do not pay tax on the loan interest they save, so it is tax effective.

For more information on Mortgage Offset Loans,forward an online enquiry to our team, or free call 1800-ALL-LOANS to talk to one of our loan advisors.