Navigating home loans can be challenging, especially with changing interest rates. Firefighter Mutual Bank is here to help you with your personal needs making your home loan work for you. Whether you’re looking for interest savings or greater flexibility, we’ve got you covered.
Offset Account
An offset account reduces the amount of interest you pay on your home loan by offsetting your loan balance with the funds in your account. It’s like a regular transaction account but with added financial benefits.
Benefits of an Offset Account:
- Save on interest: Reduce the interest charged on your loan balance.
- Easy access: Use your offset account for daily transactions and expenses.
- Convenience: Easily access your funds while reducing your interest.
Example: If your loan balance is $650,000 and you have $20,000 in your offset account, you’ll only pay interest on $630,000. This can result in substantial savings over time.
Redraw Facility
A redraw facility allows you to make extra repayments on your loan and access those funds later if necessary. It’s a flexible way to stay ahead on your loan while preparing for unexpected expenses.
Advantages of a Redraw Facility:
- Interest reduction: Extra repayments lower your loan principal, reducing overall interest costs.
- Access when needed: Withdraw extra payments for emergencies or planned expenses.
- Flexible repayments: Adapt your repayments to fit your financial goals.
Example: If your required monthly repayment is $3,000, but you pay $3,500, the extra $500 goes directly to your loan principal. Over time, this can significantly reduce your interest and shorten your loan term.
See how much you can save
Use our offset calculator by simply entering your loan details and offset balance to see your potential savings.
