Please be aware of the following Offset Account Terms and Conditions.
1. The Mortgage Offset Account can only be offset against a home loan if the Mortgage Offset Account and the home loan are in the name(s) of the same person(s).
2. The Mortgage Offset Account can only be used on eligible variable interest rate loans. See our website for more information on eligible loan products. Should your loan account/s be switched to an ineligible product at any stage during the term of your loan, your Offset account will be closed.
3. You must maintain a minimum balance of $1 (or such other minimum balance as the Bank determines) in your Mortgage Offset Account to obtain the benefit of the offset.
4. The Bank may in its absolute discretion allow you to have the offset when the minimum balance is not maintained and any such allowance will not act as a waiver by the Bank of the minimum balance requirement at a later time.
5. No interest will accrue to the Mortgage Offset Account even when the balance falls below the required minimum balance or the loan is repaid.
6. The Bank may vary these Terms and Conditions by giving you 20 days prior notice which may appear in notices at the Bank or in the Bank Newsletter or on our website at www.australianmutual.bank.
7. An account statement will be issued, as a minimum, every 6 months unless you have not made a withdrawal or deposit during the past six months, in which case a statement will be issued annually.
VARIATION OF THE TERMS OF THE LOAN CONTRACT
8. Our acceptance of your application to open a Mortgage Offset Account operates as a variation of the method of calculation of interest under your home loan contract as follows:
a. When calculating interest on your home loan, the unpaid balance used for the calculation of interest will be reduced by the Offset Balance.
b. We calculate the Offset Balance by multiplying the balance of your Mortgage Offset Account, as at the end of the day, by the Offset Rate. The current Offset Rate is 100%. We may vary the Offset Rate from time to time but must give you 20 days’ notice before the variation becomes effective.
The Customer Owned Banking Code of Practice applies to the Account.
