What options are available at Unicredit

Facility	How it works	Advantages
Redraw facility	Allows you to direct additional funds towards your home loan, and to redraw on these funds when you need them.	Reduce the amount owing on your loan. No charge to access additional funds. Low minimum redraw amount of $1,000.
Equity Access	Combines your savings and home loan into one account, with all income deposited here and interest calculated daily.	Reduce your debt as quickly as possible by dramatically reducing daily interest through regular deposits.

 

What is an offset account?

Some financial institutions offer an offset facility which links a savings account to receive your wages, to your home loan. Interest is calculated on the loan balance less the amount of savings, to reduce the principal owing (sometimes not by the full amount). Unicredit members can achieve a similar result of a 100% offset account by having easy access to their funds within one convenient account (and without extra fees).

 

What is best?

This will depend on how you intend to use your facility, how often you will require access to your savings and how disciplined you are as a borrower. You should also consider the type of home loan you have – fixed or variable rate – and which facility will suit your needs best.

 

Get the most from your Equity Access

The Equity Access account is at a slightly higher interest rate than the Standard Variable Rate loan, however, it also offers convenience and flexibility.

All deposits to the account reduce the outstanding balance, with all additional funds that may be required for special purchases being readily available. Although this level of access of credit is highly appealing, it better suits highly disciplined borrowers to make faster progress towards reducing the outstanding debt of their loan.

 

Taking a closer look at the Classic Plus

The Classic Plus has a standard variable rate lower than the Equity Access product and access to a redraw facility. Although there is a minimum repayment amount, there are benefits to put additional savings directly towards your loan account to reduce the available balance. These additional savings put you ahead of your scheduled repayments and therefore reduce the interest payable on the loan.

These additional funds can be drawn upon when in advance of the loan by simply submitting a written request. There is no charge to access your redraw, and your can access as little as $1,000.

 

Achieve the results of an offset account with your redraw facility

Whilst Unicredit does not offer a separate offset facility, members can achieve very much the same results by having a redraw facility.

If considering an offset facility, remember to look carefully at the conditions. Many do not offer a full 100% offset and have a minimum balance that has to be reached in order to qualify.

Unicredit home loan customers may see more benefit in putting their additional savings towards their home loan account to reduce the principal amount and therefore the interest payable. Additional funds can then be accessed when required using the redraw facility.

You can speak to one of our friendly Lending Consultants for more information regarding Unicredit’s redraw facility or any of the products from the home loan range. Simply call Unicredit on 9389 1011 or email enquiries@unicredit.com.au.