What is a mortgage offset account?

Many Australians do not understand various features of their home loans according to a big new survey from ME Bank.

55 per cent do not understand an offset facility.

Offset accounts are a savings or transaction banking account linked to your home loan said Patrick Nolan, ME's head of home loans.

The balance in the offset account is deducted from the balance owing on the home loan, saving you thousands of dollars in interest over the life of the loan.

Source: The Age