• Offset Accounts Simplified by RAMS



    Offset accounts are transaction accounts linked to your home loans which can help to reduce the amount of interest that you pay on your home loan


    Greater Together is showing you how you can pay less interest on your home loan using an offset account.

    When you're applying for a home loan, some lenders will give you the option of having an offset account. 

    This is a transaction account you can link to your home loan that may be able to help reduce the interest you pay on your home loan.  The balance of the offset transaction account is effectively offset daily against your outstanding home loan balance.

    This means that the amount of interest charged is based on the net amount - the amount you've borrowed on your home loan, minus the amount sitting in your offset transaction account.

    No interest is paid to you on the funds in your deposit account when you have an offset facility as you're using your funds to reduce the interest on your home loan. 

    An offset account allows you to make the most of your income and other funds to reduce the amount of interest payable on your home loan, while keeping instant access to that money, should you need it.

    However it does require a bit more self-discipline to stay focused on paying down your home loan.

    Showing you how you could pay off your home loan faster.  

    Another reason we're greater together.


    About the author

    • Raymond

      Raymond A Ram is the RAMbassador for RAMS Financial Group. Raymond works with the RAMS team to bring simple, helpful and expert information on home loans and savings accounts to life with his down to earth and cheeky personality. He enjoys seeing everyday Australians turn their dreams of saving for a goal or getting into a home a reality. 

      Growing up in Goulburn, NSW, Raymond was brought up with good old-fashioned Aussie values of hard work and a fair go. It soon became apparent that Raymond wasn't content for the conventional path of grazing, producing the very best wool, and finding a nice sheep to settle down with. So it wasn't long before his passion for performing and his talent as a likeable larrikin shone through - landing him a few roles such as 'RAMlet'. He was even tipped to play RAM-bo at one point but chose to become star of the small screen instead as RAMbassador for RAMS. He now finds this role so much more rewarding.

      Contact your local RAMS Home Loan Centre about your home loan options.

      Raymond A Ram

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  • Disclaimer:

    The information here is of a general nature only and is not intended to constitute financial or tax advice. You should consult your professional adviser, accountant or taxation expert for advice specific to your personal circumstances.

    The views and opinions expressed in this article are those of the author alone and do not necessarily represent the views or opinions of RAMS Financial Group Pty Ltd ABN 30 105 207 538 (RAMS),  Westpac Banking Corporation ABN 33 007 457 141 (Westpac) or their related bodies corporate. This article is strictly for information purposes only and neither RAMS, Westpac nor any of their related bodies corporate make any representation as to the accuracy or completeness of the information in this article or endorse the views expressed in it.