Home Loans

What's an Offset Home Loan?

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An offset home loan, or offset mortgage, links your everyday or savings accounts to your home loan. The money in these linked accounts reduces the interest you pay on your home loan.

How It Works

Suppose you owe $500,000 on your home loan and have $50,000 in your linked accounts. You’ll only pay interest on $450,000. The more money in your linked accounts, the less interest you pay.

Who Can Use It?

This loan is available for individuals or couples who are married, in a civil union, or in a de facto relationship.

Interest Rate

The interest rate on an offset loan is variable, which means it can change at any time.

Linked Accounts

You can link multiple everyday or savings accounts. Generally, these can include your accounts, joint borrower's accounts, or accounts of your parents or children. Each account can only link to one offset loan. Interest is calculated daily, so the more money you have in your linked accounts, the more interest you save.

No Credit Interest

Since your linked accounts help reduce the interest on your home loan, you won’t earn any interest on these accounts. If you decide to stop using the offset loan, we can unlink your accounts, and they may start earning interest again if eligible.


You’ll still have a minimum repayment amount due on your set repayment date. However, because of the offset, more of your repayment goes towards paying off the principal, helping you pay off your home loan faster. You can also make extra repayments anytime without a penalty.

Flexible Options

You don’t need to put your entire home loan on an offset. You can split it between a fixed rate, variable rate, or revolving home loan.

Offset Ratio

The offset ratio is 1:1. This means $1 in a linked account offsets $1 of your home loan.

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This article is for informational purposes only and should not be considered as financial advice. It is always recommended to consult with a qualified financial professional before making any financial decisions based on your individual circumstances.


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