Mortgage offset
An offset account works like a regular savings account.
Link a mortgage offset facility to your CUA prime access account and 'offset' the account's balance against your CUA real estate loan for the purpose of calculating interest on your loan.
Here's an example of how it works:
Loan amount: $100,000
CUA account balance (with mortgage offset): $10,000
Interest will be charged on the loan amount minus the balance in your CUA nominated account (offset account)
In effect, your real estate loan is only charged interest on a balance of $90,000. This facility is not available on our basic variable or mortgage freedom loans.
With CUA's mortgage offset facility you can...
- reduce the term of your loan and
- save on the amount of interest you pay on your real estate loan
If you want to pay off your mortgage sooner, a home loan with an offset facility can be a quick and simple option.
