Best Interest Duty (BID) regulations require brokers to present recommendations that are in the applicant's best interest. Often, the cost of a loan is seen as the primary (but not the only) factor that determines what is in the applicant's best interest.
Applicants with savings balances can apply these savings to products that have offset accounts linked. The offset calculator enables brokers to present offset product savings based on the initial balance and estimated monthly contribution.
Note: In your recommended product comments you should explain the basis for these figures (i.e. evidence of any savings and the applicant's ability/willingness to increase offset balance over time.
The calculator is located in Broker Tools within the Review loan products tab and the results are presented in the Compare loan products tab:
STEP 1: Enter initial offset balance in the Review loan products tab:
Note: The initial offset balance field is disabled for products that don't have an offset account.
STEP 2: Enter monthly offset contribution in the Review loan products tab:
Note: The monthly offset contribution field is disabled for products that don't have an offset account.
STEP 3: View the savings in the Compare loan products tab:
Interest savings is applied to the total cost of the loan and are presented in comparative savings to the other products compared.
Offset benefit details can be expanded to show details of average offset balance, time saved, and the resulting loan term if the offset balance is applied.
Offset benefits are shown on the compliance documents in the product comparison tables.
Offset calculator is also present in Quick Tools/Product comparison:
