Reducing the time it takes to pay off your home loan takes more than just a low rate, the features and benefits attached to the loan play a very important role.

Many Australians don’t understand how to use their home loan features to help pay off their loan sooner, and one of the most effective ways to do this is by taking full advantage of an offset account.

The term ‘offset account’ and how it works is not always well understood so it can often get overlooked when comparing home loans. However, using a 100% offset account could save you thousands in interest and essentially helping you pay your loan off sooner.

Unlike a redraw facility, a 100% offset account works just like a normal account expect it is attached to your home loan. You can get your wage deposited straight into it, and take money out as you need it without incurring any fees or charges.  

How does an offset work?

Put simply, the balance in your offset account is used to offset the amount owing on your home loan. For example: If you have a home loan of $500,000 with $50,000 in an offset account, you will only be charged interest on the remaining $450,000.

So how much can you save?

Considering how you use it, it is possible to make a real dent in your debt. It’s easiest to think of an offset account as simply an account where you can park your savings, except, the return is greater. For example, instead of earning say, 2.80%p.a. on your savings of $30,000 in a regular savings account, you could save 4.50%p.a. in interest on $30,000 of your home loan. (Assuming your home loan rate was 4.50%p.a.)

Get on Easy Street today

At Easy Street, we like to try and offer more. Generally offset accounts are only attached to variable home loans. With Easy Street we offer a 100% offset facility on both our variable and fixed rate home loans. If you’d like to take advantage of a great value home loan that offers a 100% offset account, visit

All lending subject to lending guidelines. Terms and conditions, fees and charges apply – details available on application.

This information is general advice only and does not take into account your objectives, financial situation or needs (your “personal circumstances”). Before deciding whether to buy any product you should consider your personal circumstances. You should read and consider the Terms and Conditions when deciding to use any product (terms and conditions, fees and charges may apply). Our product Conditions of Use are available on our website.

Easy Street Financial Services is a division of Community First Credit Union Limited ABN 80 087 649 938 | AFSL and Australian credit licence 231204 | BSB No 512 170

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