It’s important to research and compare all your options when choosing a home loan with an offset account. Thankfully, there are a range of comparison tools available that can help take the hassle out of this process, including:
Whether you're looking for a more traditional home loan or one with specific features like an offset account, the basic principles are still the same. A comparison rate for a product looks at not just the advertised rate, but the bigger picture, including upfront and ongoing fees.
This is particularly important when you are considering a mortgage product that may incur additional fees, as an offset can. If the comparison rate is significantly higher than the advertised home loan interest rate you can assume the lender charges significant fees and may not be the best option.
Comparison tables help you compare apples with apples by allowing you to filter and view a range of offset accounts within your specific parameters. You can use a comparison table to help you sort a selection of home loans by features including lowest rates or additional features. This can help you make a shortlist of options for your home loan package.
RateCity’s comparison tables also give you the option of comparing offset accounts from a variety of lenders that offer them, including the big four banks. Even if you have existing products with one lender, it's worth considering the other options out there to make sure you end up with the best loan for your situation.
Offset accounts come in many different forms, from variable rate home loans to partial offset and others. When looking for the best home loan for you, it's important to consider all the options and think about how they would fit into your finances. Some lenders are very strict around what type of loans they will pair with an offset, but if you shop around you can find a lender that ticks all your boxes.
Home loan calculators
Home loan calculators are another tool to help you in your search for an offset account. As well as knowing that you want an offset, you will still need to know the other home loan basics, like how much you may be approved to take out in a mortgage. RateCity’s Borrowing Power Calculator may also be able to point you towards lenders that may approve borrowers for said home loan amount with the features you require.
Finally, the Mortgage Repayment Calculator may help you to narrow down your shortlist of home loan options based on which best suits your budget. Enter your details, including interest rate, loan amount, borrower type (owner-occupier or investor), repayment type (principal & interest or interest only) and repayment frequency (weekly, fortnightly or monthly repayments) to see your estimated mortgage repayments, including interest repayments. This will help you get an understanding of what sort of savings you could achieve with an offset account and how it will impact your finances.