Offset account

An offset account is a regular bank account that is linked to your home loan and reduces the interest charged on your home loan.

For example, if your home loan balance is $500,000 and you have $50,000 in your offset account, you’ll only be charged interest on $450,000 ($500,000 loan value - $50,000 offset amount).

Over time, this can help you save interest and pay off your home sooner. Please note your offset account will not reduce the minimum repayment on your loan.

What's the difference between an offset account and redraw?

Both can help you save on interest, but they work differently:

• Offset account: A separate transaction account that reduces the balance your loan interest is calculated on.

• Redraw facility: Stores any additional repayments you have made directly on your loan, reducing the outstanding balance of your loan.