Offset Account

Am I eligible for an offset account?

For eligible variable rate home loans, interest is calculated on the loan account balance less the balance of each linked offset account.

However, not all Virgin Money home loans offer offset accounts. To access this feature, you'll need to have either:

• A variable Loaded Home Loan. You can link up to 10 Virgin Money Go Accounts to your Loaded Home Loan.
• A variable Reward Me Home Loan. You can link your home loan Companion Account to your eligible Reward Me Home Loan.

Offset benefits only apply while the linked loan has a variable interest rate. No offset benefit applies during a fixed interest rate period.

• An offset account cannot be linked to a Lite Home Loan.
• An offset account can only be linked to one loan account at a time.

Conditions apply when adding an offset account to your home loan:

• The offset account must be held in the name of one or more borrowers under the home loan and no one else.
• Your offset account needs to be already created and open before you link it to your home loan.

You can either open an offset account when you take out your loan or set one up later on; however, offset benefits will start once the eligible home loan is linked to an offset account.

How do I link an offset account to my home loan?

The way you link an offset account depends on your home loan.

Loaded Home Loan

If you have a Loaded Home Loan, you can link a Go Account in the Virgin Money app:

1. Log in to the Virgin Money app
2. Tap the 'Wallet' icon in the bottom menu
3. Select a home loan account you want to link
4. Click on the ⋮ icon
5. Tap 'Manage home loan account'
6. Select 'Manage my offsets'
7. Tap 'Link a transaction account'
8. Click on the Go account you want to link
9. Select ‘Done’ to save your details.

Reward Me Home Loan

To link an offset account for a Reward Me Home Loan, call us on 13 81 51.

Once linked, you can continue to manage your Reward Me Home Loan and Companion Account through the Virgin Money Online Hub.

How do I check my offset account is linked to my Loaded Home Loan and working?

You can perform the following checks below:

1. Log into the Virgin Money app or Internet Banking
2. Open your home loan
3. Click 'My offsets' under ‘Account details’
4. Check that the correct Go Account appears as a linked offset under your home loan
5. Review your home loan statement for the offset benefit recorded during the statement period
6. If you recently linked the account, changed your loan or completed a refinance or restructure, check the linkage again after the change.

If the correct account appears under your home loan, this confirms that the account is shown as linked.

Your statement can then help you review the offset benefit applied during the statement period.

How does an offset account reduce my home loan interest?

An offset account can help reduce the interest you pay on your home loan and potentially help you pay off your loan sooner.

For eligible variable rate home loans, interest is calculated on the loan account balance less the balance of each linked offset account.

Offset Account daily closing balance × annual interest rate applying to your home loan ÷ 365 days

For example, if your variable rate home loan balance is $500,000 and you have $20,000 in your linked offset account, interest will generally be calculated on $480,000 instead of $500,000:

The more money you keep in your offset account, the more interest you may save.

Offset benefits only apply while the linked loan has a variable interest rate. No offset benefit applies during a fixed interest rate period.

Why does my offset benefit change from month to month?

Your offset benefit will not necessarily be the same every month. It may change because:

• Your offset account balance has increased or decreased.
• Money has been deposited into or withdrawn from the offset account.
• Your home loan balance has changed.
• Your interest rate has changed.
• The number of days in the statement period is different.
• Your loan or offset arrangement has recently changed.

To review the amount yourself:

1. Check that the offset account is still displayed under the correct home loan in the app and internet banking (for Loaded Home Loans only)
2. Review transactions in the offset account for the relevant period
3. Check your home loan balance and interest rate
4. Review the offset benefit shown on your home loan statement
5. Compare the statement period with the period you expected the funds to be in your offset account.

I have a Loaded Home Loan; can I have multiple offset accounts or use an offset with a split loan?

Eligible Loaded Home Loan customers can link up to 10 Go Accounts per loan contract. Multiple linked accounts can help you separate money for different purposes while still receiving the available offset benefit. You can only link an offset account to one loan account at a time.

For split loans:

• An offset is available only against an eligible variable-rate home loan component.
• A fixed-rate home loan component does not receive the offset benefits.
• The way the benefit applies depends on the products and components included in your loan structure.

In the app and internet banking, check which home loan the Go Accounts appear under to confirm how they are displayed as linked.

What happens during a fixed interest rate period?

No offset benefits apply during a fixed interest rate period.

This means the balance in your offset account will not reduce the interest calculated on the fixed-rate loan during that period.

What happens to my offset if my fixed rate ends or I change my loan?

If your fixed-rate period is ending, your home loan may move to a different loan product or interest rate arrangement.

Because offset eligibility can vary between products, it's important to check how your offset account may be affected before the change takes place.

What loan changes could affect my offset account?

A change to your loan may affect whether your offset account remains eligible or linked. This can include:

• The end of a fixed-rate period.
• A product switch.
• A refinance.
• A loan restructure.
• A change to your fixed and variable loan splits.

After the change, check:

1. The name and type of your home loan product
2. Whether the loan or relevant component is variable and offset-eligible
3. Whether the correct offset account appears under the home loan in the app or internet banking (for Loaded Home Loans only)
4. Your interest rate and loan structure; and
5. The offset benefit shown on your next statement.

Your offset account will be unlinked, and your offset benefits will stop if your loan is no longer a variable Loaded Home Loan or Reward Me Home Loan.

If your loan later changes back to an eligible home loan, your previous offset arrangement may not automatically be restored.

If you're making changes to your home loan, it's important to understand how your offset account may be affected before the change is processed and to retain any relevant loan variation documents or communications for your records.

If the expected offset account does not appear after the loan change, follow the troubleshooting steps below.

Why can’t I link or see my offset account?

If you have a variable Reward Me Home Loan, check that the offset has not been affected by a recent product switch, refinance, restructure or split-loan change.

You cannot link an offset account to fixed-rate loans. To link your variable Reward Me Home Loan, contact Virgin Money on 13 81 51.

If you have a variable Loaded Home Loan, check the following:

• You are trying to link an eligible account.
• You have selected the correct home loan in the app or internet banking.
• The offset has not been affected by a recent product switch, refinance, restructure or split-loan change.
• You have completed all the linking steps and selected 'Done'.
• You have closed and reopened the app and checked the home loan again.

Note: You cannot link an offset account to Lite Home Loans and fixed-rate loans.

If the account was previously visible but has disappeared, or it still does not appear after these checks, contact Virgin Money on 13 81 51.

When will my offset account be unlinked from my Loaded Home Loan?

Your offset account will be unlinked from your Loaded Home Loan, and offset benefits will stop, if:

• You ask us to unlink it.
• Your offset account or loan account is closed.
• We calculate a final payout figure for a full discharge. settlement requested by you.
• Your loan is no longer a variable Loaded Home Loan.

What should I do if my offset benefit or interest does not look right?

Before contacting Virgin Money:

1. Check that the correct offset account appears under the correct home loan in the app or internet banking (Loaded Home Loans only)
2. Review the dates and balances of deposits and withdrawals in the offset account
3. Check whether your home loan balance or interest rate changed during the statement period
4. Check whether the loan was recently refinanced, restructured, switched or migrated
5. Review the offset benefit on your home loan statement
6. Note when you expected the offset account to be linked and the period you believe may be affected.

If the offset account is missing, appears under the wrong home loan, or the statement does not reflect what you expected after completing these checks, call Virgin Money on 13 81 51.

When you contact us, have the following information available:

• The home loan and offset account involved.
• The date you expected the account to be linked.
• The affected statement period.
• Details of any recent loan change.
• The specific amount or calculation you would like reviewed.

Virgin Money can then investigate the account linkage and whether the offset benefit was applied as expected.