Offset Account
A transaction account that reduces your interest — without locking your cash away.
What is Offset Account?
An offset account is a transaction account linked to your home loan. The balance offsets your loan principal when interest is calculated. $50K in offset against a $500K loan means interest is calculated on $450K — even though you can still access the $50K anytime.
Why it matters for you
For high-income professionals with meaningful savings, offset is the single best feature of any home loan. Every dollar parked there effectively earns a tax-free return equal to your loan rate. Also powers debt recycling strategies. A "100% offset" works fully; some loans offer partial offset — always check.