An offset account, as the name suggests, offsets the amount of loan you have taken from the lender. A lot of lenders in Australia set up an offset account for you so that you only have to pay for the balance of the loan amount and the balance in the offset account.

A lot of borrowers have saved tremendously in interest expenses using this structure of the loan. You can use our home loan offset calculator to find out how much savings you can make on interest expenses when you set up an offset account with your lender.