What Is An Offset Account? | Bank First

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Offset accounts are available with our Complete and Premier Package Home Loans.

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What is an offset account?

An offset account is a transaction account linked to your home loan that helps reduce the amount of interest you pay. Find out how an offset account works.

What is an 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.

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What is an offset account?

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