An offset account is a transaction account that is linked to your home loan and has the functions of a regular everyday account. But what makes it so valuable to homeowners?
If you have a home loan of $300,000 and $20,000 in your offset account, you'll only be charged interest on a loan balance of $280,000. ($300,000 - $20,000 = $280,000).
Essentially, the balance in your account is offset against the amount owing on your home loan, potentially saving you thousands of dollars in interest repayments, taking years off your loan.
Most lenders only offer the offset feature as part of a variable rate home loan. However, Auswide Bank customers can access features not normally provided by other banks including an optional mortgage offset account with our fixed rate home loan.
A mortgage offset account and redraw facility~ are both valuable features to have as part of your home loan. Both of these features can help reduce the amount of interest you pay and help to pay off your loan sooner, but how are they different?
An offset account is linked to your home loan and is used like an everyday bank account. The funds in your account are ‘offset‘ against the balance of your home loan, reducing the interest owing on your loan.
Redraw facility, on the other hand, allows you to withdraw or ‘redraw’ any extra repayments you've made towards your home loan (above the required minimum amount) to use as you wish. While it's handy to access the redraw facility for unexpected bills, a holiday or a home reno; increasing your regular repayment above the minimum amount could help pay off your home loan sooner through reducing the interest charged over the life of the loan.
| Fees | Amount |
| Monthly fee | $10 $0 if you are an eligible Auswide Bank Freedom Plus Package customer.^ |
| ATM withdrawal | $0 When withdrawn at an Auswide Bank ATM or branch' |
| Electronic payments | $0 |
| Direct debit | $0 |
| BPAY® | $0 |
| Cheque deposit processing | $0 |
| Cash deposit | $0 |
| All fees and charges | View our Guide to Mortgage Offset Account for details |
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This account is available for personal use only - businesses, companies, body corporate, superannuation funds, family trusts, clubs and non-profit organisations are not eligible.
'Auswide Bank' branded ATMs are classified as ATMs displaying the 'Auswide Bank' logo.
^ A once-off Mortgage Offset Administration Fee of $75 applies on the first offset per loan, waived under Freedom Package.
*Mortgage Offset must be opened in at least one of the same names as the borrower’s loan account.
~Redraw is subject to Auswide Bank's discretion – limits may apply.
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