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Choices Floating with Offset.
You could save thousands in interest repayments and get mortgage free sooner by offsetting your home loan balance against your everyday and savings accounts.
Offset your savings to pay less interest and get mortgage free sooner.
Link your everyday and savings accounts to your Choices Floating Home Loan with Offset to reduce the interest you pay. The more money you have in your linked accounts, the more you can offset. This could save you thousands in interest repayments and help pay off your home loan sooner.
Benefits.
- Only pay interest on the difference between the money in your linked accounts and your offset home loan balance.
- More of each repayment goes towards paying off your loan.
- Link up to 10 eligible accounts, including those of eligible family members, to increase the amount you offset.
- Keep your everyday and savings accounts separate, so your money stays organised and easy to manage.
- Flexibility to change your repayment amount and make lump sum payments anytime without costs¹.
How Offset works.
We add up the money in your linked accounts and subtract the total from your offset home loan balance. You only pay interest on what’s left.
Your regular repayments on your offset home loan stay the same, but by paying less interest, more of each repayment goes toward paying off your loan. This means you could be mortgage-free sooner.
While your accounts are linked they don’t earn interest, instead the money works to reduce the interest on your offset home loan. And you stay in control. You can unlink your accounts at any time and they’ll start earning interest again, if applicable.
Offsetting in action
- Choices Floating Home Loan with Offset: $750,000
- Amount in your linked accounts: $50,000
We’ll subtract the $50,000 in your linked accounts from your loan, so you’ll only pay interest on $700,000. By keeping your repayments the same you could:
- Save $237,081.63 in interest
- Take 4 years and 2 months off your loan.
This scenario is based on a $750,000 loan over 30 years at 6.39% with $50,000 kept in linked accounts and repayments staying the same.
Split home loan
You can offset all of your home loan or a portion. In this example, offsetting just $20,000 reduces interest repayments by over $97,000 and cuts two years off the home loan. Learn more about a split home loan.
This scenario compares a $750,000 loan over 30 years at 6.39% to a split loan of $730,000 fixed for 28 years at 6.39% and $20,000 floating with offset that is fully offset with savings.
Calculate how much you could save.
Current rate.
If you don’t pay amounts when they’re due, your loan account may exceed its limit and the rate of interest that’ll be applied to the overlimit amount will be the interest rate + 5% p.a.
Get in touch.
Meet with an expert
Our Home Loan Experts can come to you, when it suits you best.
Already bank with us? Apply online.
The fastest way for existing customers to apply for a home loan is in Westpac One® digital banking.
Quick help.
What accounts can I link?
You can link eligible everyday and savings accounts, including Westpac Everyday, Easy Access, Online Saver (for existing customers2), Westpac Bonus Saver and Simple Saver. Some accounts aren’t eligible, such as term deposits, PIE savings accounts, KiwiSaver, and residential construction loans.
Can my family help offset my home loan?
Yes, your partner, parents and children can link their eligible accounts to help offset your home loan.
Do I still earn interest on my linked accounts?
No, money in your linked accounts reduces the interest you pay on your loan instead of earning interest.
Can I access the money in my linked accounts?
Yes, you can access your accounts as you would usually. Keep in mind, as your balance changes, so does the amount of your loan you offset, so the more you have in your linked accounts, the more interest you save.
Can I see my linked accounts and offset balance?
You can view your linked accounts and the total balance offsetting your home loan anytime in Westpac One, so you can see how your savings are reducing your interest.
Can I unlink my accounts?
Yes, get in touch with us and we can unlink your accounts at any time, and they’ll start earning interest again, if applicable.
Things you should know.
1 See Choices Home Loan Account fees .
2 These accounts are no longer available for new applications.
The Choices offset feature is only available on a Choices Floating Home Loan.
Interest rates are subject to change without notice. Westpac's home loan lending criteria, terms and conditions apply. A low equity margin may apply.
Documents and fees
See the detailed terms and conditions, and fees for our Choices Floating with Offset Home Loan:
- Choices Home Loan Summary - Sample
- Choices Home Loan Terms and Conditions
- Transaction and Service Fees
- Westpac General Terms and Conditions
View terms and conditions for all our home lending products.