The Mortgage Offset facility can be operated from any Access Account or On Call Savings Account and is linked to a Mortgage Loan type L02, L03 or L04 account. The balance of the nominated Access Account or On Call Savings Account (hereafter known as the Offset Account) is offset against the balance of the nominated Mortgage Loan account each day. Any balance in the Offset Account will help reduce the interest charged on the Mortgage Loan.

In all respects but one, the Offset Account is unaffected in its terms and conditions and operational capabilities by the linkage to the Mortgage Loan account. As the Offset Account is offset against the mortgage loan no interest is earned on this account even if the balance of this account exceeds the loan balance. The actual balance (less any uncleared funds) of the Offset Account is the amount used in offsetting the balance of the loan account. The Offset Account can only be offset against one nominated eligible Mortgage Loan. The Offset Account can only be linked to a mortgage loan in the same name/s within the same membership.

The Offset facility can be activated, only on request, by completing the Offset Facility Application Request. On receipt of your completed application Transcomm will link your nominated Access Account or On Call Savings Account to the mortgage loan you have nominated.

The Offset facility can be detached at the Member’s request by completion of the Offset Facility Detachment Request.

When the Offset facility is detached from the loan account it is available for re-use with any compatible offset enabled loan either now or at a future date.

We reserve the right to withdraw the Offset Facility at any time by giving the Member reasonable notice. Fees and charges may be payable associated with the operations of this facility. Refer to our current Fees and Charges Schedule.

This is a Supplementary Product Disclosure Statement (SPDS) containing important information regarding Transcomm Credit Union’s Mortgage Offset facility. Transcomm Credit Union recommends that you read this SPDS in conjunction with the Product Disclosure Statement it supplements; (PDS – 1 March 2004 Version 1, for financial products, general information relevant to all products and non-cash payment products and services and their related Terms and Conditions SPDS – 1 August 2006 Version 3, Schedule of Fees and Charges and SPDS – 21 August Version 3, current interest rates) before deciding to acquire the service. This SPDS has been prepared to assist you with the understanding of the significant features of the products and services to enable you to make informed choices about the products and services before you acquire it.

Nov 2006 Version 1

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