Get a Free Offset Account with your Home Loan

Compare home loans with free offset accounts to see how much you could save on interest. With some of Autralia's lowest rates, you can find the lender that's right for you. - Data last updated on 22 Aug 2019

Compare free offset home loans

1 - 10 of 10
Product
Advertised rate
Comparison rate*
Monthly repayment
Company
Features
Real Time Rating™
Go To Site
View Now
Compare

More details

View Now
Compare

More details

Enquire Now
Compare

More details

View Now
Compare

More details

Advertisement
Advertisement

View Now
Compare

More details

View Now
Compare

More details

View Now
Compare

More details

Home loans with free offset accounts

When taking out a home loan it pays to look at the wide range of options that lenders now provide. It doesn't have to be terribly complicated, however, you should do your homework before making a decision on what is the best type of home loan for your circumstances.

What are home loans with free offset accounts?

Home loans with free offset accounts work as a regular transaction account that is linked to your home loan. You can save money as you reduce the amount of interest that's charged on the balance of your loan. It's a free feature and means that with each monthly repayment made there will be more money applied to the principal balance. Any funds you hold in the account, provided it's a 100 per cent offset account, will offset the amount of interest you are charged on the home loan. There are free offset accounts and those that charge monthly fees, so be sure of what you are signing up to if you are looking for the free option. 

How do home loans with free offset accounts compare to other products?

All home loan products have different features so you need to work out what is the most appropriate route to take. Although some are advertised as being free, check that you won't be charged any additional fees for the service, for example application fees, higher annual fees or higher interest rates. Look at comparison rates too, as well as the interest rate advertised, and be aware that some lenders may offer offset accounts at relatively low percentages. This could impact on the amount of money you will save over the years in terms of interest payments on the loan. 

What are the main features of home loans with free offset accounts? 

This type of home loan can be of benefit if you have some savings and want to use them to reduce the amount of interest you pay on your home loan. When you take out a home loan under with this feature you have the potential to save a considerable amount of interest, provided you have a reasonable sum of money to offset. As an example, if you take out a home loan of $250,000 and have $20,000 in your offset account, interest will only be charged on $230,000. Daily interest is thus calculated on a lower amount and you may therefore be able to pay off the loan more quickly than expected. 

Are there risks to consider?

Before you take out any home loan product always check the small print to make sure you are getting exactly what you expect. Ensure that 100 per cent of the offset account balance is deducted from your home loan balance before interest is calculated for the day. Make sure also that you can deposit and withdraw funds from the account when you want to, either online, through a teller or at an ATM. There may be times when you need some ready cash from your savings and you need to weigh up the impact that could have in terms of the interest you will then be charged if your offset account balance reduces. 

Call RateCity 1300 001 153

^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

Compare your product with the big 4 banks, or add more products to compare
As seen on