Your customer needs to request a transaction account for their trust or company at the time of applying for their basic home loan. They can request an offset account when applying for an offset home loan. Once the home loan is settled, a company or trust borrower won’t be able to open a transaction or offset account.
Transaction or offset accounts for a trust or company must be in the same name as it's home loan and should be requested as part of their application. Things to keep in mind:
- a maximum of four offset accounts can be opened pre-settlement
- a transaction account differs from an offset account. A transaction account will not provide the same benefits as an offset account linked to an offset home loan product
- additional transaction or offset accounts cannot be opened post settlement of the home loan
- savings accounts are not offered for a trust or company
- your customers should seek tax advice to understand the effectiveness of having an offset account for the company or trust.
