An offset account is a transaction account linked to your home loan. Its balance is taken off the loan balance before interest is worked out, so money held there reduces the interest charged. Loans with a full offset often carry a higher rate or a yearly package fee than a basic loan, so any saving depends on how much you keep in the account. Compare home loans with an offset account from 5.93%This is our lowest starting rate for these products. Other factors may change rates once you filter your results. See sorting and ranking for more info. p.a. (6.28% comparison rate) with Southern Cross Credit Union's Emoney Home Loan.
Rates checked against every provider’s own published dataWe show all of the product information we are able to access. For banking products that is each provider’s public Consumer Data Right (CDR) Product Reference Data endpoints, published under the Consumer Data Standards (CDS) maintained by the Data Standards Body. Where a provider does not publish a field, or a row is an editorial selection, we say so. on 19 Oct 2026
Borrowing $500,000 over 30 years at the lowest advertised shown:
Monthly repayment from
$2,975/mo
Total repaid
$1,071,104
Total interest
$571,104
Estimate only, based on the lowest advertised interest rate shown and assuming equal monthly repayments. Actual repayments depend on your rate, fees and loan terms.
Suitable for Investment and Owner Occupied residential borrowing with LVR up to 95%. Fixed and Variable rates available including for construction purpose (variable only)
Suitable for Investment and Owner Occupied residential borrowing, LVR up to 95%. Fixed and Variable rates available including for construction purpose (variable only)
Suitable for Investment and Owner Occupied residential borrowing. LVR up to 95%. Fixed and Variable rates available including for construction purpose (variable only)
MyState offers a premium variable rate product for customers seeking a home loan in excess of… $100,000. If you're buying or building your own home, a residential investment property, a block of land…
We’re proudly supporting the Government’s initiative to help Australians purchase their first home… sooner. Border Bank will help you get into your first home with our low rates and great features.
Bank Australia's discounted variable rate for energy efficient homes and green upgrades. Offset, redraw and extra repayments are all included, and the bank is customer owned.
The Bendigo Express is an online home loan which enables a customer to apply and be approved for a… home loan re-finance digitally. The application form will be hosted by our partner Tiimely.
The Better Choice Gold Special Home Loan offers a standard variable loan. This loan suits borrowers that are looking for flexibility with their home loan and investment properties with a fully…
Our home loan for first home buyers with government assistance.
Rates and fees are sourced from each provider’s CDR Product Reference Data where the provider publishes it.
Comparison rate warning and base criteria
Base criteria: repayment figures shown in this table are calculated on a loan of $500,000 over 30 years. Repayment estimates use each loan’s advertised interest rate, with the comparison rate shown beside it as a guide to total cost. These figures are examples only. They are not a quote, and they may not include all fees and charges.
*Warning: the comparison rate shown is calculated by the lender on its own standard example, usually a $150,000 loan over 25 years. This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
About this table: we publish this table so you can research credit products, by bringing together in one place the banking data lenders publish under the Consumer Data Right. Using that data, we have tried to show products that match this table’s title. This table does not compare all products, and there may be products with a lower rate in the market that are not shown here. Do your own research to find a product that suits your needs and financial goals. See how we choose products for tables like this.
Products are selected for relevance to the table and to the filters applied. They are not suggestions or recommendations, and the order they appear in is not a ranking of suitability.
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Rates, fees and charges are subject to change without notice. Before acting on any information shown here, you should confirm the rates, fees, charges and product information with the provider. For clarity, where we have used the terms “lowest” or “best”, these relate solely to the rates of interest offered by the provider and not to any other factor. The application of these terms to a particular product is subject to change without notice if the provider changes their rates.
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This information is general in nature. It does not take into account your objectives, financial situation or needs, and it is not a recommendation to apply for or hold any particular product. You should read the provider’s Key Facts Sheet, Target Market Determination and credit contract terms before deciding. CompareThat compares products. We do not arrange, approve or process applications.
What is an offset account and how does it work?
An offset account is a transaction account linked to your home loan. Its balance is “offset” against your loan balance when interest is calculated, so you’re charged interest on a smaller amount. With $20,000 in an offset against a $500,000 loan, interest is charged on $480,000, while the cash stays available to use.
How much can an offset save you?
The more you hold in the offset and the longer it stays there, the more you save. Salary, savings and an emergency buffer can all sit in the offset doing double duty: accessible when you need them, and cutting interest while they’re there. Even a modest, steady balance can shave months off the loan.
Offset vs redraw
Both reduce interest, but they differ. An offset is a separate everyday account, so funds are instantly accessible. Redraw lets you pull back extra repayments you’ve made into the loan, which can be slower to access and is sometimes restricted. Offset usually offers more flexibility; redraw is often free.
How home loans with offset accounts compare
Offset is often part of a packaged loan with an annual fee, which sits against the interest saved. Offsets are either full (100%) or partial. Loans can be compared side by side, and the full market is on the home loans hub.
Expert view
“An offset only earns its keep if you actually keep money in it. With salary and savings parked there, even a steady few thousand dollars cuts real interest. But where a packaged offset loan charges an annual fee and the balance runs low, a plain low-rate loan with free redraw can come out ahead.”
JP
Jordan Pearce
Senior finance writer, CompareThat
Glossary
The key terms you’ll meet when comparing these products, reading product disclosures or talking to a provider.
Term
What it means
Comparison rate
A single rate that combines the advertised interest rate with most fees and charges, so loans can be compared on a like-for-like basis.
Fixed rate
An interest rate locked for a set term, so repayments stay the same regardless of market movements, usually with limited extra repayments or offset.
Interest-only
A repayment type where you pay only the interest for a period; the loan balance does not reduce and the rate is often higher.
Lenders Mortgage Insurance (LMI)
A one-off insurance premium that protects the lender, usually charged when you borrow more than 80% of a property’s value.
Loan-to-value ratio (LVR)
The size of your loan expressed as a percentage of the property’s value. A 20% deposit gives an 80% LVR.
Offset account
A transaction account linked to your loan; its balance is offset against the loan, reducing the interest you are charged.
Package fee
An annual fee for a packaged loan that bundles features such as an offset account, redraw and sometimes a credit card.
Partial offset
An offset that reduces interest on only part of your balance, or at a reduced rate, rather than dollar-for-dollar.
Principal and interest (P&I)
A repayment type that pays down both the amount borrowed and the interest, reducing the balance over the life of the loan.
Redraw
A facility that lets you access extra repayments you have made above the minimum, if you need the money back later.
Variable rate
An interest rate that can move up or down with the market, usually paired with more features such as offset and unlimited extra repayments.
Common questions
How does an offset account save interest?+
Your offset balance is subtracted from your loan balance before interest is calculated, so you’re charged interest on a smaller amount, while the money stays available to spend.
How does an offset compare with redraw?+
An offset is a separate everyday account with instant access; redraw pulls back extra repayments from inside the loan and can be slower or restricted. Offset is more flexible, but redraw is often free.
Do offset accounts cost more?+
Often an offset comes with a packaged loan that charges an annual fee. It’s worth it when the interest you save exceeds the fee, which usually means holding a meaningful balance.
Can I have more than one offset account?+
Some lenders allow multiple offset accounts against the one loan, which can help you bucket savings. Availability and any limits vary by lender.
What is a partial offset?+
A partial offset only offsets a portion of your balance (or at a reduced rate), unlike a full 100% offset where every dollar counts. Each loan’s terms say which type it offers.
The Numbers Behind This Market
What this market is paying or charging on average right now, and the official figures behind it.
We are not a lender, broker or bank. Product data comes straight from each provider’s own Consumer Data Right feed (Australia’s official open banking system) and is refreshed daily, so what you see reflects published rates and fees, not a sales pitch.
✓Not a credit provider: we do not lend, arrange loans or take applications.
✓Sourced from each provider’s CDR Product Reference Data, refreshed daily.
✓Payment can change where a product appears, never which products we show.
✓General information, not credit advice. CompareThat compares; it does not recommend.
Rates and fees are sourced from each provider’s CDR Product Reference Data as of the date shown. They are general information only. Not credit advice. CompareThat is not a credit provider. Payment can change where a product appears, never which products we show.
