Offset Account

A transaction account linked to your home loan, where the balance reduces the amount of loan principal you pay interest on.

In More Detail

For example, $50,000 sitting in an offset account against a $500,000 loan means you only pay interest on $450,000. Offset accounts can be a useful way to reduce interest costs while keeping funds accessible, which can suit medical professionals with variable income or irregular cash flow.

When to Seek Help

If you want to understand whether an offset account or extra repayments would suit your situation better, this is worth discussing directly with a broker.