An offset account links a savings account to your variable rate home loan, and uses the money in that account to offset your loan balance.

How do I set up 100% offset?

You can generally only get offset on variable loans, or on the variable part of your loan. So if you have a split home loan (meaning part of your loan is fixed and part of your loan is variable), you can usually link an offset account to the variable part.

If your home loan is eligible, linking a new or an existing account is easy. And, if you link an existing account your account number and any payments you already have set up won’t change.

If your home loan isn't already linked, you’re unsure or just want to see if you can add a 100% offset account to your loan, talk to your banker, or call us on 13 22 65.

Options if your loan doesn’t offer 100% offset

If you have a fixed rate home loan, your options may be more limited. At the end of your fixed rate period, your loan will shift onto a variable interest rate, or you’ll have the option of splitting it into fixed and variable parts. When this happens, you can consider getting an offset account.

When offset might not be right for you

Usually offset is the most convenient way to save yourself money on your home loan, but there are some exceptions.

Another way to reduce the interest on your variable rate home loan is to make extra repayments. There’s no difference in the money that you will save compared to using your offset, but there are some instances where making extra repayments to reduce your home loan balance can be a better option for you. For instance,

  • You want to increase the equity in your home
  • You want to reduce your loan repayments.
  • You can redraw when you’re ahead on payments and you’d rather transfer the savings into your home loan where it is out of sight and out of mind.


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