Fixed Rate Home Loans With 100% Offset Accounts

Rates and fees last updated on

The secret to minimising interest on a fixed rate home loan.

Not all fixed rate home loans are lacking in features.

Today, many lenders offer the ability for fixed rate borrowers to make additional repayments, use redraw facilities and take advantage of 100% offset and partial offset accounts.

An offset account works like a regular transaction account. You can have your salary deposited into it, along with any other money you receive. You’ll also receive a debit card which you can use to access the funds. The difference is that funds in the account offset the principal loan amount, thereby reducing your interest repayments. For example, if your home loan balance is $500,000, but you have $20,000 in an offset account, interest will only be calculated in $480,000.
Rates last updated May 29th, 2017
Loan purpose
Offset account
Loan type
Your filter criteria do not match any product
Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
Illawarra Home Loans First Home Fast Track Home Loan - 3 Year Fixed
Make up to $20,000 in extra repayments per year and enjoy a full offset account.
4.13% 4.43% $0 $0 p.a. 95% More info
Adelaide Bank SmartFix Home Loan - 1 Year Fixed Rate (Owner Occupier, P&I)
Take advantage of a 100% offset account and additional repayment options.
4.17% 4.67% $375 $15 monthly ($180 p.a.) 95% Enquire now More info
ANZ Fixed Rate Home Loan - 1 Year Fixed (Owner Occupier, P&I)
Enjoy a 100% offset account for this one year fixed rate home loan.
4.14% 5.19% $600 $10 monthly ($120 p.a.) 95% Enquire now More info
Adelaide Bank SmartDoc Fix Home Loan - 2 Year Fixed Rate (Owner Occupier, P&I)
A low doc fixed rate loan with 100% offset account.
5.35% 5.48% $375 $15 monthly ($180 p.a.) 95% Enquire now More info
Adelaide Bank SmartFix Home Loan - 2 Year Fixed Rate (Owner Occupier, P&I)
Lock in a rate for two years and enjoy a full offset account and redraw facility.
4.35% 4.68% $375 $15 monthly ($180 p.a.) 95% Enquire now More info
Adelaide Bank SmartDoc Fix Home Loan - 1 Year Fixed Rate (Owner Occupier, P&I)
Enjoy a low doc loan with a fixed rate and 100% offset account.
5.17% 5.45% $375 $15 monthly ($180 p.a.) 80% Enquire now More info

How do fixed rate home loans with 100% offset accounts work?

Fixed rate mortgages let you lock in a rate for a set period, usually ranging between one and five years. Some lenders also offer fixed rate terms for as long as 10 years.

A fixed rate loan with a 100% offset account lets you link an account to your mortgage, with the balance of that account offsetting your principal loan amount. This can save you a considerable amount in interest, and can actively encourage you to save money. As this is a 100% offset account, the entire amount in the account can be used to reduce your principal.

Donny’s offset account

Let’s compare two scenarios with Donny, our savvy borrower.

In the first example, let’s say Donny has a home loan with a rate of 6%. His loan size is $400,000, meaning his repayments are approximately $2,398 a month. At this rate he’ll pay a total of $863,353 over the course of the loan, $463,353 of which is interest.

If he has an offset account and keeps $20,000 in it over the course of his loan, he would pay off his loan three years earlier, and would save $55,759 in interest.

His repayments would still be the same, but more of each repayment would go towards the principal (the original loan amount).

Use our offset calculator to see how much you could save

How to compare these types of mortgages

  • Fixed term. Think about how long you want to be locked into the rate. Terms can range from one to as long as 10 years. Choose a term you think you’ll be comfortable with, and remember that break fees are payable if you exit your loan before the term ends. If you plan to sell your property in the future ensure your fixed term accommodates this.
  • Fees. These type of loans may come with upfront and ongoing fees that could negate the savings you may make in the long run, so remember to take these into account.
  • Additional features. As well as an offset account, the home loan may offer you other features, such as a redraw facility, the ability to make additional repayments, or it may come as a package that offers discounts. Check to see if you stand to make any further savings.

Pros and cons


  • As the interest rate is fixed your repayments will remain the same during the fixed period.
  • The balance you have in the offset account will be taken off your principal loan amount, actively helping to reduce the amount of interest you pay.


  • You’re unable to refinance during the fixed rate period without incurring expensive break costs, which may mean you lose out on a much better deal if rates are cut.

As with all home loan products, there are a few things to consider before applying. Some offset accounts come with account-keeping fees, so you should look into what you’ll be paying and whether this will eat into your savings.

Offset accounts are also not offered on all fixed rate loans, and may only be offered on more fully-featured home loans. These loans tend to come with higher interest rates and fees, so be sure to calculate the full cost of the loan.

Frequently asked questions

Can you use a 100% offset account to make a home loan repayment?

Yes. The accounts are linked and you can nominate it as your chosen account, but keep in mind this would reduce the balance in your account and affect the interest you pay on your home loan.

Does the offset account earn interest?

No interest will be earned on the balance in your offset account.

Marc Terrano

A passionate publisher who loves to tell a story. Learning and teaching personal finance is his main lot at Talk to him to find out more about home loans.

Was this content helpful to you? No  Yes

Related Posts

HSBC Home Value Loan - Resident Owner Occupier only

Enjoy the low variable rate with $0 ongoing fee and borrow up to 90% LVR.

NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier)

A fixed rate package loan with flexible repayments options. NAB Rewards Points offer available, terms and conditions apply.

IMB Budget Home Loan - LVR <=90% (Owner Occupier)

A competitive budget rate without any unwanted bells and whistles.

Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤85% ($150K+ Owner Occupier)

Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.

Ask a Question

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • 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

Disclaimer: At we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the privacy policy, receive follow up emails related to and to create a user account where further replies to your questions will be sent.

Ask a question