Offset Facility


Reduce Your Mortgage Cost Whilst Maintaining Flexibility.

An Offset Facility is a transaction account that can reduce the amount of interest payable on your home loan. The interest on your home loan is calculated on the loan account debit balance less the offset account credit balance.

For example: 100% Mortgage Offset Facility

Home Loan Balance: $500,000

Home Loan Interest Rate: 4%

Offset Transaction Account Balance: $60,000


Without an Offset Account the monthly interest payable is calculated as:

$500,000 x 4% x (31 days in month / 365 days in year) = $1,698.63

With the Offset Account the monthly interest payable is calculated as:

($500,000-(60,000×100%)). x 4% x (31 days in month / 365 days in year) = $1,494.80

In this example the interest payable is reduced by $203.83 per month.


100% Offset accounts are often available against Variable Rate Loans. A small number of products offer the same against Fixed Rate Loans but more often only a Partial Offset that is less than 100%, or no offset is available on a Fixed Rate Loan.

Some facilities allow for multiple offset accounts which our clients and their financial planners like for Budgeting purposes.

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