Offset Account

Is my offset account linked and working?

If you have an eligible BOQ home loan and Mortgage Offset Account, you can check whether your offset account is linked by reviewing your home loan statement for an "offset interest" amount under the transaction details. This indicates your offset account is reducing the interest payable on your home loan.

For example, if your variable rate home loan balance is $500,000 and the balance in your linked offset account is $20,000, the effect is generally the same as paying interest on $480,000 rather than $500,000.

What should I do if I think my offset account isn't linked or isn't working correctly?

Before contacting BOQ, we recommend:

1. Check that you have an eligible home loan product.
2. Review your latest home loan statement and the "offset benefit saved" amount.
3. Check whether you've recently changed your home loan, as this may affect your offset arrangement.

If you've completed these checks and still believe your offset account isn't working as expected, please contact BOQ.

Which home loans are eligible for offset?

The BOQ Mortgage Offset Account is available with eligible Clear Path Variable Home Loans, Package Standard Variable Home Loans and Standard Variable Home Loans.

The BOQ Mortgage Offset Account cannot be linked to Fixed Home Loans or Economy Variable Home Loans.

Can I link an offset account?

If you're applying for a new eligible home loan, your lender can help set up your Mortgage Offset Account as part of the application process.

• The account holder of the offset account must be a borrower on the linked eligible home loan.
• Only one Mortgage Offset Account can be linked to an eligible home loan at any one time.
• If you already have an eligible home loan, contact BOQ to discuss your eligibility and available options.

Not all home loan products offer mortgage offset. To access this feature, you’ll need to hold an eligible Clear Path Variable Home Loan, Package Standard Variable Home Loan or a Standard Variable Home Loan.

What happens to my offset account if I change my home loan?

Changes to your home loan may affect your offset arrangement.

This includes:

• Switching home loan products.
• Refinancing.
• Restructuring your loan.
• Changing loan splits.
• Moving from a fixed-rate loan to a variable-rate loan.

Offset eligibility depends on the home loan product you hold after the change.

If your loan changes to a product that is not eligible for offset, your offset arrangement may be removed.

If you later move back to an eligible loan product, your offset account will not automatically be re-linked, and you can contact BOQ to arrange this or discuss your eligibility and available options.

BOQ can cancel your mortgage offset facility if:

• Your home loan is closed.
• You change to a home loan that is not eligible for offset.
• Your offset account is closed.
• You ask us to cancel the offset arrangement.

If your offset facility is cancelled, offset benefits will no longer apply.

If you're planning to make changes to your home loan, we recommend confirming how your offset account may be affected before the change takes effect.

I recently changed my loan. Do I need to check my offset account?

Yes. After any loan change, it's a good idea to check that:

• Your offset benefit continues to be shown on your loan statement.

  Note: This information is only available on your statement and cannot be viewed on the account transactions page in the BOQ Mobile app or Internet Banking.

• Your offset account is operating as expected.

How is offset calculated?

The balance held in your linked offset account is used to reduce the amount of your home loan balance on which interest is calculated.

BOQ calculates an offset benefit each day based on the closing balance of your linked offset account and the daily interest rate applicable to your home loan. This offset benefit is then deducted from the interest that would otherwise be charged on your home loan for the interest period.

Offset Account daily closing balance × annual interest rate on your home loan ÷ 365 days

For example, if your home loan balance is $500,000 and you have $20,000 in your linked offset account, the offset benefit is generally the same as paying interest on $480,000 instead of $500,000.

This can help reduce the interest charged on your home loan and potentially help you pay off your loan sooner.

If the balance of the offset account is greater than the amount owing on the loan, no additional offset benefit is received for the excess.

What does "offset benefit saved" mean?

Offset benefit saved is the reduction in home loan interest achieved through the balance held in your linked offset account. The more money you keep in your offset account, the greater the potential interest saving.

The benefit of an offset account is that it reduces the interest charged on your eligible home loan. Interest is not paid on the balance held in the offset account.

Why does my offset benefit change each month?

Your offset benefit is based on several factors, including:

• Your offset account balance.
• Your home loan balance.
• Your interest rate.
• The number of days in the month.

Changes to any of these factors may affect the offset benefit.

Why is my offset benefit higher or lower than I expected?

Your offset benefit may vary if:

• Your offset account balance changes during the month.
• Funds are withdrawn from or deposited into your offset account.
• Your home loan balance changes.
• Your interest rate changes.
• The month has a different number of days.

Why am I not seeing an offset benefit on my statement?

There are several reasons why an offset benefit may not appear or may be lower than expected.

• The offset account is not linked to an eligible home loan.
• The offset account balance was low during the statement period.
• Funds were withdrawn from the offset account.
• The home loan product does not support offset.
• The offset account was recently linked, and the benefit may not yet appear on your latest statement.

If you've reviewed these scenarios and still believe your offset benefit is incorrect, please contact BOQ.

How can I maximise my offset benefit?