Homeowners have taken to making a dash on their loans by utilising pandemic savings, with a record $50 billion funnelled into offset accounts over the past two years according to figures published in The Australian.

New data from the Australian Prudential Regulation Authority (APRA) detailed in The Australian noted average households were 45 months ahead of principal and interest mortgage payments and 52 months ahead of interest only mortgage repayments. 

This comes following the household saving ratio recording a 46-year high peak of 23.6% in June quarter 2020 and a rate of 19.8% in the latest September 2021 quarter.  

NAB Executive of Home Ownership Andy Kerr said Australians love offset accounts and are more active users than pretty much anywhere else in the world.

"The use of offsets has surged, with total offset account values up more than 10% through the pandemic," Mr Kerr told Savings.com.au.

 “The main reason for these trends is the record low rates that have been on offer, while there has also been an element of forced saving as the pandemic has postponed many major milestones, such as weddings and overseas holidays."

Minister for Housing and Assistant Treasurer Michael Sukkar said the Australian economy is continuing its recovery from the Covid-19 pandemic, and these figures show that Australians are well placed to pay down and get ahead on their home loans.

"On top of strong jobs growth and unemployment at 4.6%, household savings throughout the pandemic are ensuring people can get ahead and stay ahead of their mortgage," Minister Sukkar told Savings.com.au.

"Housing programs, from HomeBuilder to the Home Guarantee Schemes, have seen more Australians achieve the goal of owning their own home.

"The economic support provided to households during the pandemic has backed in Australian homeowners and we remain committed to supporting more people buying a home of their own."

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Extra Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
5.54% p.a.
5.58% p.a.
$2,852
Principal & Interest
Variable
$0
$530
90%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 10% Min Deposit
  • Redraw
  • Extra Repayments
  • More details
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.49% p.a.
5.40% p.a.
$2,836
Principal & Interest
Variable
$0
$0
80%
  • Built and funded by CommBank
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 20% Min Deposit
  • Redraw
  • More details
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
5.64% p.a.
5.89% p.a.
$2,883
Principal & Interest
Variable
$250
$250
60%
  • 100% offset
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 40% Min Deposit
  • Offset
  • Redraw
  • More details
  • Easy application. Fast approval. 100% offset.
  • Unlimited additional repayments free of charge.
  • Redraw available - Access additional payments.
 Disclosure
5.64% p.a.
5.89% p.a.
$2,883
Principal & Interest
Variable
$248
$350
60%
  • Owner Occupier
  • Variable
  • Principal & Interest
  • 40% Min Deposit
  • Offset
  • Redraw
  • More details
  • Check your eligibility in as little as one minute
 Disclosure
Important Information and Comparison Rate Warning

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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 . View disclaimer.

Important Information and Comparison Rate Warning
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Image by Sandy Millar via Unsplash

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