Finder makes money from featured partners, but editorial opinions are our own.

Ask Finder: Can I get a mortgage offset account in my business’s name?

Avatar
Adam Smith
Posted:
News
A worried business owner.

A business woman checking papers at her desk and looking worried.

Business mortgages with offset accounts do exist. The tricky part is understanding how it affects your tax.

I am looking at refinancing a home loan that is in a business name. I do not draw a salary from this business. Do you know of any bank that will allow me to have an offset account attached to the loan in the business name?

Thanks,

Offset Entrepreneur

Dear Offset Entrepreneur,

Thanks for your question. Yes, there are banks that offer offset accounts on home loans in a company name. These will generally be specific business loan offset accounts. Among the major banks, both ANZ and Westpac offer 100% offset accounts on business loans.

However, you may run into some sticky tax issues if your home loan is in your name and you try parking business funds in it. While offset accounts don't draw interest, and therefore don't produce earnings you'd have to claim on your taxes, as a company director you have to account for the funds you move from a business account to a personal account.

The ATO is pretty vigilant when it comes to companies structuring their funds to gain a financial advantage. If you've moved company funds into a personal home loan, it will have to be in payment for some good or service, or a loan at market rates.

Before you think about using company funds to offset the interest on your personal home loan, make sure you speak to your accountant or tax specialist. The interest you save by using an offset account won't be worth much if you run afoul of the ATO.

Hope this helps!

Ask Finder is a regular column where Finder's expert writers answer your questions. All rates and fees are correct at time of publication and we only give general advice.

Do you have a question? Reach out in the comments or speak to someone from our 24/7 customer service team.

More Ask Finder questions

Picture: Shutterstock

Ask a Question

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our 1. Terms Of Service and 6. Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Latest headlines

Go to site