Compare offset home loans

Lender

Variable
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UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
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ZERO APPLICATION FEESFEE FREE OFFSET
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
Variable
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100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
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NO APPLICATION FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
NO APPLICATION FEES

Yard Home Loan (Principal and Interest) (Special) (LVR < 80%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
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100% FULL OFFSET ACCOUNT
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNT

Ocean Owner Occupied (Amounts < $1m, LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
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NO UPFRONT OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
NO UPFRONT OR ONGOING FEES

Owner Occupier Accelerates - Evaporate (LVR 60%-70%) (Principal and Interest)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
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100% FULL OFFSET ACCOUNT
100% FULL OFFSET ACCOUNT

Offset Package Home Loan (Principal and Interest) (LVR < 60%)

    Variable
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    Offset Variable Owner Occupier Principal & Interest (LVR 70%-80%)

      Variable
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      EASY DIGITAL APPLICATION
      EASY DIGITAL APPLICATION

      Neat Variable Home Loan (Principal and Interest) (LVR 70%-80%)

        Variable
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        NO UPFRONT OR ONGOING FEES
        NO UPFRONT OR ONGOING FEES

        Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 80%)

          Variable
          More details
          100% FULL OFFSET ACCOUNT
          100% FULL OFFSET ACCOUNT

          Offset Package Home Loan (Principal and Interest) (LVR 70%-80%)

            Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 29, 2022. View disclaimer.

            Guides & resources:

            What is a mortgage offset account and how does it work?

            A mortgage offset account is a transaction (or savings) account linked to your home loan.  The money in this account is “offset” against the balance of your loan, meaning you only pay interest on the difference.

            For example, if Louis had a loan of $450,000 and had $50,000 in a linked offset account, he would only have to pay interest on $400,000.

            As the balance in this offset account grows, the amount you save on interest also grows, which could save you money and cut the amount of time it takes you to pay off your loan.

            You can see for yourself how effective an offset account can be by using Savings.com.au's Offset Calculator

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            What types of loans can offset accounts be used with?

            Offset accounts can be linked to either a variable or fixed rate home loan, with some lenders requiring an offset account for a portion of a fixed term.

            100% offset account

            While there are different variants of offset accounts available, by far and away the most common is the 100% balance offset account. As used in the offset account example above, the total offset account balance is subtracted from the outstanding loan balance before interest is calculated. Because of the ‘saving’ nature of a 100% offset account, the balance in the offset account doesn’t earn any interest (eg. this would effectively be ‘double-dipping’).


            What are the potential disadvantages of an offset account?

            There are some offset account disadvantages to be aware of. Mainly, home loans with offset accounts can have higher interest rates and fees than loans that don’t have them (more info on this in the next section).

            Also, some offset accounts only partially offset the interest costs on funds in the account. For example, $50,000 in a 50% partial offset account would only offset the interest costs on $25,000 of the outstanding loan balance.   


            How much do you save with an offset account?

            To reap the benefits of an offset account and accumulate the most savings, the amount of money deposited into the account must be consistently at a reasonable level ($100 isn’t going to do it for you!).

            One of the ways that people manage to maximise the amount in their offset accounts is by putting all of their work income into their offset account and using a credit card for their expenses/purchases made throughout the month. Critically, they then make a lump sum payment from the offset account once a month at the time ‘due’ from their credit card provider to balance the credit card back to $0 (and hence avoiding any interest charges and fees from the credit card itself).

            As with many financial product features, there are often certain types of fees and premiums involved. And while saving money long term is the focus here, you have to make sure you do the basic sums to ensure that the fees don’t end up costing you more than the amount you save by reducing the interest bill on your home loan!

            Some of the common fees and premiums involved with offset accounts can include:

            • Standard transaction fees
            • Application/establishment fees
            • Higher monthly account keeping fees
            • Higher interest rates

            Compare the different home loan fees here

            Case study: Offset account

            Louis borrows $450,000 and decides to go with a 100% offset account loan which costs him nothing extra in fees, but attracts an interest rate premium of 0.1% p.a higher than the same loan without the offset account. At the end of the first year of his loan (which has a 3.00% p.a interest rate), he has managed to maintain $25,000 on average in his offset account across the entire year.
            The savings Louis makes from the offset account over a 30 year term is $33,994 - much more than he'd save by simply picking a mortgage with a 10 basis point lower rate. He also manages to pay off his loan two years and seven months sooner, so it's a win-win for Louis.

            Frequently Asked Questions

            There are pros and cons to both redraw facilities and offset accounts, so one is not necessarily better than the other. While an offset account often offers more accessibility and flexibility compared than a redraw facility, home loans that come with offset accounts generally have higher interest rates than loans that only have a redraw facility.
            Unlike a savings account, funds in an offset account do not earn interest, so there are no interest earnings to tax. Instead, the money in an offset account reduces the interest costs on the loan.
            Offset accounts are designed to have the same functionality as a savings account, giving you easy instant access to funds. Many offset accounts even come with a debit card to allow you to spend and withdraw cash from it.
            Generally, you can only have one offset account linked to one loan. Some lenders may allow you to have multiple offset accounts linked to one loan, however the majority don't.
            You can only put funds from your super into an offset account once you've reached the age at which you're legally allowed to access your super. If you've permanently retired, this may be between 55 to 60 (depending on when you were born) or after you've turned 65 (regardless of whether you've retired or not).
            Your minimum monthly repayments will generally stay the same no matter how much money is in your offset account. Having money in an offset account just means more of your repayment amount will go towards paying down the loan principal and less towards interest. The money in an offset account is 'offset' against the balance of your home loan, so you only pay interest on the difference between the loan amount and the amount in your offset account. This can considerably reduce the amount of interest you need to pay, so your monthly mortgage repayments reduce the loan amount faster.