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What is a mortgage offset account?

Front and centre of saving both money and years off your home loan is having an offset account. The amount held in this account will be offset against the balance of your loan. This means you’ll pay less interest on your home loan. This will directly affect the amount you pay off your loan each month and, over time, will add up and reduce the time it takes you to pay off your loan.

Will an offset account suit me?

If you are unable to make additional or lump sum repayments on your home loan an offset account could give you the benefits of reducing the amount of interest you pay while ensuring your funds are still accessible.


Jenny’s home loan balance is $340,000. She currently has $12,000 in her offset account. This means that Jenny is only paying interest on a home loan balance of $328,000.

If needed, Jenny is able to use the $12,000 at any time. However, by taking money out of her offset account this will directly affect the amount of interest she pays on her loan.

For more information about offset accounts and whether they will suit you visit one of our Home Lending Specialists in branch or phone 13 14 22. Criteria, fees and conditions apply.

* Based on a $150,000 loan over 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

The information provided is intended as general information only. Blogs have been prepared without taking into account your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness having regard to your objectives, financial situation or needs. You should consider obtaining personal investment, taxation and/or legal advice before making any decision.  Please consider the Guide to Heritage Deposit Products and Guide to Heritage Credit Card Products (available in-branch, or at before you decide whether a product is right for you. All loans and credit cards are subject to application and approval. Conditions, criteria and fees apply and are subject to change without notice.