An offset account is a transaction account linked to your home loan.

Money in your offset account reduces the interest you pay by offsetting what you owe on your loan and lets you retain access to your money.


  • Saving the amount of interest you pay – By having your spare money in your offset account, you may be able to pay off your home loan sooner and pay much less in interest than if you did not use an offset.
  • Your offset account can also be your transaction account – You can have your salary deposited into your offset and use this as your everyday account with a linked card for payments.
  • Your money is working harder for you in an offset account rather than a high-interest savings account –  in the current environment, the interest you pay on a home loan is about 4% p.a.. On the flip side, the interest you earn in a high-interest account is only about 2.50% p.a. You are better off keeping your money in an offset rather than a high interest account.
  • Not only will an offset account reduce the amount of interest you pay, using one can also be a great strategy to get you into your next home. As an example, if you wanted to upgrade the family home and retain your existing property as an investment property, having money reserved in your offset account (which otherwise would have been used to pay down the loan) is an advantage and can have significant tax benefits if set up correctly.

There are many benefits to having an offset account however they may not be for everyone.

Speak to your Home Loan adviser or contact us to learn more about offset accounts applied to your personal circumstances.

This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances.