Redraw & offset

Offset account

What is an offset account?

An offset account is an AMP deposit account linked to your home loan that operates like a transaction or savings account. It offsets the balance in that account against the balance of your home loan, so you'll only be charged interest on the difference.

Having an offset account may help you to pay off your home loan ahead of its term and save thousands of dollars over the life of the loan, simply by depositing all your regular income and earnings into your offset account.

How an offset account works

Say you have a home loan balance of $400,000 and savings of $20,000. If you keep the $20,000 in an offset deposit account, the interest on your home loan will only be charged on $380,000, not $400,000. You won’t receive interest on the $20,000 in the offset deposit account; instead, that $20,000 is offsetting and reducing the interest otherwise charged on your home loan.

Even though you typically don’t receive interest with an offset deposit account, your money is still working hard for you. The point of an offset deposit account is to reduce the amount of borrowed money on which you are paying interest and shorten the term of your loan.

Like a regular transaction or savings account, your money is still accessible from the offset deposit account. But if you make a withdrawal, you’ll have less money working to lower the interest charged on your home loan.

How do I set up an offset account?

You have the ability to open and link up to 10 offset deposit accounts to your AMP Blue home loan, with the combined balances of all your offset deposit accounts being used to reduce the interest calculated on your AMP Blue home loan. To do this, simply apply for one or more offset deposit accounts online.

As soon as you receive notification that your offset deposit account has been set up, you can link this to your AMP Blue home loan. To do this, you will need to complete the online request form in My AMP online or in the My AMP app. It may take up to 5 days to process your request. Once the account is linked, you can view it under the ‘Account Details’ section of your offset account on the My AMP app.

Once your offset deposit account/s are opened, you can choose to transfer some or all your redraw to your offset deposit account/s if you wish to.

Redraw facility

How does a home loan redraw facility work?

With your AMP Blue home loan, you have access to a redraw facility, which means that you can access extra repayments you might have made on top of your minimum repayments when you need it. You can do this by transferring money to other accounts you hold with your bank, or by using your AMP Visa debit card.

The word extra is key here, as redrawing excess funds applies only to payments you make above your regular minimum monthly repayments. For example, if your minimum monthly mortgage repayments are $2,500 and in one month you repay $4,000, you can redraw the extra $1,500 in the future.

This may provide some peace of mind should a financial emergency arise, or something else, such as your next property purchase.

How do I set up my redraw facility?

Your redraw facility is a feature of your home loan and you don’t need to do anything to set up your redraw facility with your AMP Blue home loan.

You will now be able to access any redraw available on your home loan via the My AMP app or My AMP online banking from your desktop.