100% Offset Home Loan

A 100% Offset Home Loan combines the advantages of a conventional home loan with the strength of offset accounts. You can link a savings or transaction account to your mortgage using this new financing option, consequently “offsetting” the value of these accounts against the balance of your ongoing loan. 

At Mortgage Pros, we understand that buying a home is among the most important financial decisions you’ll ever have to make, and we’re here to help you get the most out of it.

How a 100% Offset Account Works

You can keep your savings and extra money in an account called a 100% offset account that is connected to the loan you have. You can deposit your regular income into the account and withdraw only the amount you need to spend to maximise the balance in your offset.

The sum in your offset account is then subtracted from the loan balance due, and interest is only changed on what is left over when interest is computed on your mortgage.

Although connected to your mortgage, your offset account functions as a different transaction account. You can use your money to pay bills, cover regular costs, or in an emergency. This gives you freedom and liquidity in your finances.

For homeowners wishing to reduce their loan term, save on interest, and keep access to their savings, a 100% offset account might be helpful. If you have additional money that you can routinely deposit into the offset account, it’s a great alternative.

What are the Benefits of 100% Offset Home Loans?

A 100% offset home loan’s main benefit is the possibility of interest savings. You can lower the interest you pay on your mortgage by keeping a balance in your offset account. This might save you a lot of money through your mortgage.

You can use the cash in your offset account for regular costs, bills, and emergencies, even though the account is linked to your mortgage. This gives you liberty and liquidity in your finances.

Managing a 100% offset account can be straightforward, like operating a standard savings or transaction account.

But unlike a separate high-yield savings account or investment, the money in an offset account won’t generate interest income. After all, it’s a feature in your home loan, and the best you can do with it is minimise interest payments.

You must have the self-control to balance the account to get the most out of an offset account. You won’t get the interest savings you wish if you frequently withdraw from your savings.

Make sure to thoroughly read the terms and conditions provided by your lender and evaluate how well they fit with your financial objectives and situation. That’s where our senior mortgage brokers can help.

Talk to our team at 1300 030 388 and discuss your financial goals with us. We’ll let you know if a 100% offset home loan is best for you and how you can achieve your homeownership goals with this loan solution.

Do all lenders offer 100% offset accounts?

Not all lenders provide accounts with 100% offset. Depending on the lender and the particular mortgage product they offer, 100% offset accounts may only be available to some. Lenders may or may not provide this service depending on how they conduct business and the kinds of home loans they provide.

We have 40+ banks and non-bank lenders in our panel and can give you a broad range of 100% offset home loan products that best suit your needs. Our senior mortgage brokers will sit down with you and evaluate the particular features and benefits of each mortgage deal.

At Mortgage Pros, we take pride in providing our clients with creative, valuable solutions. To speak with a mortgage broker specialising in house loans with offset accounts, call us at 1300 030 388 or enquire with us if you need professional guidance on 100% offset accounts.

Can I open an offset account with a primary home loan?

Offset accounts are not an aspect of the primary home loans offered by big financial institutions. This means that to obtain an offset account, if you are borrowing less than $250,000, you might need to take out a professional package loan.

Smaller banks, building societies, and non-bank lenders do, however, provide very affordable essential loans with offset accounts. These products are perfect for those with a small debt who want the advantages of an offset account but want to avoid paying monthly charges or prefer not to.

FAQs

I have extra money; should I put it in the loan or offset account?

It’s okay to put your extra funds in the home loan account or the 100% offset account.

We recommend keeping your daily funds in the offset account and putting all your extra funds in the home loan account. As a result, you won’t be tempted to spend the money because it’s not readily accessible.

A 100% offset account is beneficial for whom?

Anybody can open a 100% offset account, regardless of how much money they want to borrow. You won’t necessarily pay more because this house loan has no account maintenance or other hidden expenses.

Dual-income households with significant monthly expenses typically gain the most from an offset account because they require the most cash for daily expenses.

Can loans with fixed rates have a 100% offset?

Most lenders do not permit 100% offset accounts for fixed-rate house loans. However, we have a broad panel of lenders and can take you through those who offer this kind of loan. 

Offset accounts are more likely to be offered with variable-rate loans because they often have more flexibility and loan features. Contrarily, fixed-rate loans have interest rates that are “fixed” for an established time, meaning you frequently have fewer alternatives for making additional repayments or using offset accounts.

Whether you are a professional or a first home loan borrower, Mortgage Pros can help. We have created a successful formula allowing us to assist clients across Australia in finding the best home loan offers.

Talk to our senior mortgage brokers at 1300 030 388 or enquire online. We’ll discuss your unique financial situation and take you through offset home loan solutions that best suit your needs.