Choices Offset

Choices Offset gives you the ability to use the balance of your eligible Westpac transaction and savings accounts to offset against your floating home loan – and only pay interest on the difference. This could save you thousands on your interest repayments and cut years off your home loan.

It's for you if:

you want to reduce the amount of interest you pay
you want to reduce the length of your loan
you want to focus on saving as well as paying off your home loan
you’d like to keep your home loan and savings in separate accounts
you’re comfortable with a floating rate knowing that interest rates could change

Overview

Key benefits

you could save thousands on your interest payments and reduce the length of your home loan
your accounts stay separate, giving you flexibility to access and manage your money to suit your needs
link eligible Westpac accounts, including those of your parents or children to help increase your offset benefits
have the flexibility to pay lump sums off your home loan at anytime
get a competitive floating interest rate
you want to make the most of your day to day transactional account balances
you have immediate family that would like to help you pay off your home faster
create a loan that suits you by splitting your home loan across floating and fixed rates as well as Choices Offset

How it works

It's really as easy as A + B = C but let's look at an example.

Current home loan balance: $300,000
LESS: Current savings/transaction balance: $25,000
You pay interest on: $275,000

With a Choices Offset floating interest rate of 4.59% p.a. and a term of 30 years, you could save more than $78,000 in interest and pay off your home loan 3 years 9 months sooner.

To see how this can work for you, check out our examples on the following tab or have a play with numbers on our Choices Offset calculator here.

Choices Offset examples

Every little bit helps

If you don’t have any current savings but you start putting a little away each month you’ll increase the total amount you can offset against your floating home loan – this could save you thousands in interest repayments and help you pay off your home loan sooner.

In the example below, you’ll see putting away just $500 a month could save you $172,160 in interest and pay off your home loan 5 years sooner.

Current home loan balance: $500,000

LESS: Current savings balance: $0
LESS: Transaction balance: $2,500
LESS: Monthly savings: $500

(Calculations are based on a 30 year term and interest rate of 5.34% p.a.).

The example is for illustrative purposes only. The actual reduction in the home loan term will depend on individual circumstances and interest rates are subject to change. This does not constitute a quote of offer by Westpac.

To see how this can work for you check out our Choices Offset calculator here.

Linking accounts

With Choices Offset by linking any eligible Westpac transaction and savings accounts, could boost the amount you offset. The eligible ‘linked’ accounts can be yours, your parents or your children.

Let’s say you’re saving for your child’s education. With Choices Offset, you can link their savings account to your floating home loan, reducing the amount of interest you pay on your home loan, without sacrificing your child’s education fund or combining accounts.

In the example below, you could save more than $329,000 in interest and pay off you home loan 9 years, 9 months sooner!

Current home loan balance: $500,000

LESS: Current linked savings balance: $100,000
LESS: Transaction balance: $2,500
LESS: Monthly savings: $500

(Calculations are based on 30 year term and interest rate of 5.34% p.a.).

To see how this can work for you check out our Choices Offset calculator here.

The details

Rates
Choices Offset floating interest rate	4.59% p.a.	This can go up or down when the market changes and gives you the flexiblity to pay off some or all of the loan at any time.
Features
Loan term	Up to 30 years	This is how quickly you want to repay the loan. A longer term means smaller regular repayments but you’ll pay more interest overall.
No need to open new accounts as you can link your existing eligible accounts	✔	Transaction Westpac Everyday Earner Easy Access Savings Online Saver^ Westpac Bonus Saver Simple Saver
Products excluded from linking	✔	Cash PIE funds Term Deposits and Term PIE Westpac KiwiSaver Scheme Save and Win^
Interest on linked savings accounts	✔	Interest won't be paid on your linked savings accounts but withholding tax will not be paid on these accounts either.
Redraw	✔	With a floating loan you can redraw up to your limit at anytime. This can be done through internet or phone banking or at any branch.
Transfer of property	✔	You may be able to take your home loan with you if you move to another property.
Top-up	$5,000 or more	You can apply to top up your loan by $5,000 or more at any time.
Repayment options
Repayment frequency	Fortnightly or Monthly	Choose between fortnightly and monthly repayment cycles to coincide with when you receive your income/salary.
Table (Principal & Interest)	✔	With a table loan your regular payments are the same each time (unless interest rates change). This is the most popular type of loan because it gives more consistency to your payments.
Interest only	✔	An interest only loan is where you pay the interest owing each fortnight or month but nothing off the loan principal. This option is usually for a limited term only.
Flat / Reducing	✔	With a reducing home loan you pay a set amount off the principal each time plus the interest you owe. So your payments are a lot higher at the start than later on.
Increase Regular Repayments	✔	You can change your repayments at any time without having to re-document your loan.
Reduce Regular Repayments	✔	If you’re paying more than the minimum required you can reduce your regular repayments to any amount at or above the minimum.
One-Off Lump Sum Repayments	✔	You can partly or fully repay your loan at any time without break costs.

^These accounts are no longer available for new applications.

Interest rate

Home loan option	Rate
Home Loans - Choices Offset Interest Rate
Choices Offset Floating	4.59% p.a. Salary credit to a Westpac transaction account required.

If you are applying for a mortgage with low equity (i.e. your deposit is less than 20%), Westpac may charge an additional interest margin of between 0.25% to 1.5% per annum.The actual margin charged will depend on your level of equity.

This rate may differ for existing Westpac home loan customers. Please contact Westpac for further information.

Rates are subject to change and may vary at anytime.

View all our home loan interest rates here

Loan terms and conditions

View and/or download our terms and conditions for our Choices Offset account below:

View and/or download terms and conditions for all our consumer lending products here.

View Terms and Conditions

Choices Offset is only available on a Choices Floating home loan. Interest rate is current and subject to change without notice. Westpac's current home loan lending criteria and terms and conditions apply. An establishment charge and a Low Equity Margin may apply. An additional fee or higher interest rate may apply to home loans if the application is accepted but does not meet the standard lending criteria. You can link any eligible Westpac transaction and savings accounts for Choices Offset. Linked accounts will not earn interest. Terms, conditions, fees and charges apply to Westpac transaction and savings accounts. You can get a copy of the current Disclosure Statement for Westpac New Zealand Limited from any Westpac branch in New Zealand free of charge.