An 100% offset transaction account could be a great financial tool for saving you money and time, on your home loan. With the Newcastle Permanent Mortgage Offset Account, each month the balance of your account is deducted from the principal on your home loan before interest is calculated. This means that your interest due is lowered, putting more of your payment towards your principal.
Over time, this can add up to thousands of dollars in savings.
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What are the features of the Newcastle Permanent Mortgage Offset Account?
In addition to the benefit you get from home loan savings, the Mortgage Offset Account is also a transaction account, with features that are meant to help in meeting your daily financial needs. Compare those with other Australian banks’ offset accounts to help you in choosing the one that benefits you the most:
- Offset amount. Newcastle Permanent offers 100% offset, allowing for the entire balance to be deducted from the home loan principal rather than a percentage.
- Availability. This account is available to Newcastle Permanent members who currently have a Premium Plus Package home loan or Premium Variable home loan.
- Monthly fees. You will not be charged a monthly account keeping fee.
- Transaction fees. If you set up an automatic payment from this account for your home loan, you can have up to 30 free transactions each month. If not, the maximum is 20, depending on the balance of your account. Two are given for every $500 after the first, up to 14, plus the six which are automatically included as a part of the account.
- Minimum account balance. There are no balance requirements for this account.
- Deposit options. You can make deposits into your Mortgage Offset Account using direct credit and salary credit, over the counter at your local branch, account transfers through internet banking and with phone banking.
- Withdrawal options. Withdrawals from the account can be made via ATM, EFTPOS, at a branch, electronic transfer, BPAY, direct debits and phone banking.
- Linked debit card. You are given the option of a Visa debit card for easy access to your account. With this you can make purchases wherever Visa is accepted, in person, online and over the phone. The Visa debit card can also be used to make cash withdrawals.
- ATM access. Free transactions are allowed at all Newcastle Permanent ATMs as well as ATMs in the Westpac group. This includes over 3,000 Westpac, St.George, Bank of Melbourne and BankSA ATMs.
- Overseas withdrawals. Newcastle Permanent does not charge you for making withdrawals from your account when outside of Australia, yet you could be charged fees by the provider network.
- Foreign transaction fees. You will be charged 2% of the purchase value with any transaction that is made in a foreign currency.
- $0 ongoing account keeping fee.
- Internet and phone banking are free.
- A wide range of access options for your money such as BPAY and EFTPOS.
How do I apply for the Newcastle Permanent Mortgage Offset Account?
If you want to start saving on your home loan with Newcastle Permanent, you can apply for the Mortgage Offset Account online in just a few minutes. To ensure that your application is accepted, check that you are able to meet the eligibility requirements first:
- Availability. You must have either the Premium Plus Package home loan or Premium Variable home loan in order to take advantage of this 100% offset account.
- Minimum age. Applicants must be at least 18 years of age.
- Residency requirements. Only permanent Australian residents can apply.
- Depository requirements. No minimum opening balance is required.
When beginning the application you are going to be asked if you currently have a home loan with Newcastle Permanent, to which you are going to select yes. You will then be asked if you would like to link that home loan to the Everyday Account to which you are also going to select yes in order to have your new everyday account balance count towards your home mortgage principal. Documentation needed once you begin could include:
- Tax file number. Your tax file number (TFN) is used to ensure that you are being taxed at the correct rate for any interest earnings.
- Identification. Verifying your identity can be done with a driver’s licence or passport.
After your application has been submitted, expect to hear back from Newcastle Permanent with your BSB and account number so that you can begin making deposits and setting up direct payments. Your linked debit card will be mailed to the home address that you provided.