Top home loans with an offset account to help you save

Niko Iliakis

17 Jan 2019

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Offset accounts are a popular option when it comes to picking out a home loan, and it’s no mystery why. If used correctly, they can shave years off your mortgage and save you thousands on interest.

How exactly? The more you have in an offset account, the less interest you’ll pay on your home loan. For example, if you have a home loan of $400,000 and an offset account holding $50,000, you’ll only pay interest on $350,000 of your loan amount. Pretty great, right?

So if you’re thinking about buying a home and want to fast track your mortgage, offset accounts are well worth a look. To help you out, we’ve compiled some top home loans with 100% offset accounts to kick your property journey into high gear.

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loans.com.au Offset Variable 80
  • 3.72% interest rate (3.74% comparison rate*)

  • No ongoing fees

  • $2,000,000 maximum loan

The Offset Variable 80 was an obvious standout in last year’s Mozo Experts Choice Awards, winning in the Investor Home Loan & Low Cost Home Loan category. Among the features that make it so appealing are its unlimited free redraws, minimal fees, and 3.72% interest rate (3.74% comparison rate*). Loan amounts range from $50,000 to $2,000,000, and you won’t have to pay any upfront fees aside from the valuation and settlement fees.

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Newcastle Permanent Discounted Variable Home Loan
  • 3.89% interest rate (4.29% comparison rate*)

  • 100% offset facility

  • 90% maximum LVR

The Newcastle Permanent Variable Home Loan won big in the 2018 Mozo Experts Choice Awards (Best Packaged Home Loan and Split Home Loan categories), so it should come as no surprise that it features on this list. The interest rate sits at a competitive 3.89% (4.29% comparison rate*) for loans of $150,000 or more, and you’ll be able to borrow up to 90% of the property’s value. In keeping with the theme of flexibility, you also have the option to split the loan between a fixed and variable amount if interest rate changes leave you feeling skittish. Just remember, there’s a yearly service fee of $395.

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Beyond Bank Low Rate Special Variable Home Loan
  • 3.79% interest rate (3.79% comparison rate*)

  • No upfront fees

  • No ongoing fees

True to their name, Beyond Bank continues to exceed expectations with their Low Rate Variable Home Loan, proving they’re a major contender in the home loan game. They offer a low 3.79% interest rate (3.79% comparison rate*), making this one of the more attractive deals around. And best of all, there are no fees besides the $350 discharge fee, which is pennies compared to the money you’ll save overall.

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NAB Tailored Home Loan
  • 4.64% interest rate (5.03% comparison rate*)

  • 95% maximum LVR

  • Discounts on NAB insurance products

If you’re not ready to make the jump to a smaller bank, NAB’s Tailored Home Loan Choice Package could be the home loan for you. It offers competitive rates relative to other big banks, comes with a free redraw facility, and allows you to borrow up to 95% of the home’s value. What’s more, you can receive discounts on a number of NAB insurance products by bundling them with your loan.

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

Now that you’ve got an idea of the types of deals available, take a look at our offset home loans comparison page if you want to see more options.

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