- picklesamParticipant@picklesamJoin Date: 2004Post Count: 55
Hi all just want to ask if i have an offset account, and I put 100% of the money i owe into it, what happens to my loan? ie I owe $300k but now have $300k in the offest account. Will the account be closed or can i keep putting money into it?WhatIfWeFinanceMember@whatifwefinanceJoin Date: 2009Post Count: 58
Assuming you have an interest only facility, $300k in an offset account with 100% interest offest means you pay no interest. The loan is not closed and you can deposit or withdraw from your offset account.
If you are on P&I you may still be required to pay the minimum monthly repayment but there will be no interest and you are paying off principal only.picklesamParticipant@picklesamJoin Date: 2004Post Count: 55
Thanks Spiro for your help!TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
And it depends on the bank too, St G in particular are different. One of their offsets actually reduces the principle, even on IO loans.