Offset Variable Home Loan

Rates and fees last updated on

The Offset Variable Home Loan is a low rate home loan funded and underwritten by Firstmac, one of Australia's largest mortgage providers.

The Offset Variable Home Loan offers a competitive variable interest rate, no application fee, no annual fee, an offset account with free redraws and extra free features like BPAY, direct credit and debit transactions.

Interest Rate Max Insured LVR Max LVR
80% to 90% LVR (Investor P&I)
4.39% p.a.
Comparison Rate
4.41% p.a.
90% 80%
80% to 90% LVR (Owner Occupier P&I)
4.04% p.a.
Comparison Rate
4.06% p.a.
90% 80%
Package Offset (Investment, P&I)
3.72% p.a.
Comparison Rate
3.74% p.a.
80% 80%
Package Offset (Investor, IO)
4.07% p.a.
Comparison Rate
4.09% p.a.
80% 80%
Up to 80% LVR (Investor IO)
4.27% p.a.
Comparison Rate
4.29% p.a.
80% 80%
Up to 80% LVR (Investor P&I)
4.07% p.a.
Comparison Rate
4.09% p.a.
80% 80%
Up to 80% LVR (Owner Occupier IO)
4.07% p.a.
Comparison Rate
4.09% p.a.
80% 80%
Up to 80% LVR (Owner Occupier P&I)
3.72% p.a.
Comparison Rate
3.74% p.a.
80% 80%
Product Offset Variable
Interest Rate TypeVariable
Comp Rate^ (p.a.)
Minimum Loan Amount$50,000
Maximum Loan Amount$1,000,000
Minimum Loan Term15 years
Maximum Loan Term30 years
Maximum LVR80%
Maximum Insured LVR90%
Mortgage Offset AccountYes
Mortgage 100% OffsetYes
Loan Redraw FacilityYes
Split Loan FacilityYes
Loan PortableYes
Suitable for InvestmentYes
Extra RepaymentYes
Available as equity loan/line of creditNo
Repayment TypePrincipal & Interest and Interest Only Options

Application Fee$0
Lender's Legal Fee$0
Valuation Fee$220
Ongoing Fees$0 p.a.
Settlement Fee$300
Discharge Fee$300


  • There is $0 application or ongoing monthly fees.
  • You can make extra payments without penalties and access extra funds from the mortgage via the free redraw facility, with no minimum redraw amount
  • A 100% offset account is linked to your home loan


  • There is a $220 valuation fee
  • There is a $300 settlement fee
  • There's no branch access with this loan as the lender is online only

Things to consider about the Offset Variable Home Loan

This home loan can be used to buy residential property as a home or investment. Note that using this home loan to finance an investment comes with a higher interest rate.

Features of the Offset Variable Home Loan

  • 100% offset account. A 100% offset account enables you to pay off your loan sooner by reducing the amount on which interest is calculated. An offset account is a regular transaction account that has a VISA Debit card with ATM access, cheque book access and internet access. You can also redraw from this account if you need extra funds.
    • Loan term. This loan’s minimum term is 15 and the maximum term is 30 years.
    • Loan to value ratio (LVR). The maximum loan to value ratio (LVR) for this loan is 90%. Borrowing more than 80% will require you to pay lenders mortgage insurance (LMI).
    • Repayment options. Repayments can be made weekly, fortnightly or monthly with the Offset Variable Home Loan. Interest-only repayments are available for up to five years.
    • Redraw facility. This loan has a free redraw facility with no minimum redraw amount. This means you can get access to any additional repayments you've made 24/7, either online or over the phone.
    • Loan amount. The minimum loan amount is $50,000 and the maximum loan amount is $1,000,000 if you’re only using one asset to secure the loan (your property).
    • Accessibility. You can access your account online or by phone at any time. You can manage your money from an online interface which includes your loan transactions, loan statements, redraws and bill payments. You also get a VISA debit card that is connected to your offset account and has the additional security of Verified by VISA protection. Borrowers can access these funds via the CueCard ATM network, which includes Westpac, St.George, BankSA and Bank of Melbourne. You'll also receive up to five free ATM transactions a per month with an agreed list of financial institutions.
    • CoreLogic Report. When you enquire about a home loan with, you will receive a complimentary CoreLogic Report. These reports provide potential homeowners with the tools they need to make an informed decision, including property photos, details, comparable properties, mapping and valuations.
    • Split your loan. You can split your loan up to five times without incurring any additional charges. Splitting your loan gives you the ability to hedge your bets against upward rate movements, while also leaving room to take advantage of a reduction in lending rates.


  • Application Fee: $0.
  • Annual Fee: $0.
  • Monthly Fee: There's no monthly fee with this loan.
  • Discharge fee: $300. This fee covers the administrative costs of preparing your loan discharge documents. Although say that there is no exit fee with this loan, when you pay out loan it will still be considered a discharge and the relevant fee will apply.
  • Settlement fee: $300.
  • Valuation fee: $220 or at cost. This covers's third party costs. will have to have the value of your property appraised before they can use the property as a security to lend against. This fee typically increases when your property value is above $1 million.

How to apply for this home loan

If you think the Offset Variable Home Loan is for you, then click 'Enquire' or 'Go to Site' and you will be safely redirected to the homepage. Once you’ve been redirected you will see a pink button that will allow you to enter your basic information. will then you give you an obligation-free follow up call. Scroll down to view the application process so you know what to expect.

The below diagram is courtesy of and represents the loan application process after you contact them. application process Offset Variable Home Loan Interest Rate History vs RBA Cash Rate Graph

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This page was last modified on 28 March 2017 at 1:28pm.

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77 Responses to Offset Variable Home Loan

  1. Default Gravatar
    JA | May 9, 2017

    What is “settlement fee” and “discharge fee” (is it “closure fee”?)/
    Do you have something that other lenders call “legal fee”?

    • Staff
      Anndy | May 11, 2017

      Hi JA,

      Thanks for your question.

      Also called ‘termination’ fee, settlement fee is charged when you pay out your mortgage in full. This may also apply to the costs to payout your loan and to switch the funds to your new mortgage. As with, the settlement fee of $300.00 is deducted from the loan proceeds at settlement.

      Once your mortgage is paid in full, you will be required to pay discharge fees that cover the finalisation of the mortgage process and the paperwork involved in the change of title. This fee covers the administrative costs of preparing your loan discharge documents. Although say that there is no exit fee with this loan, when you pay out loan it will still be considered a discharge and the relevant fee will apply. Offset Variable Home Loan does not charge Lender’s Legal Fee.


    • Default Gravatar
      JA | May 9, 2017

      To clarify – I am looking to refinance – I presume I do not pay settlement fee? Are the only fees in my case “discharge fee”, payable whenever I either pay off the loan or take it to another bank, and “valuation fee”?

    • Staff
      Liezl | May 12, 2017

      Hi JA,

      Thanks for your question.

      If you intend to refinance, you might still pay settlement fee which is the costs to payout your previous lender and to switch the funds to your new mortgage. Although, sometimes this cost is absorbed by the lender and waived for customers.

      You may want to read our guide on refinancing costs to give you an idea on what other fees you may incur when refinancing your loan.

      I hope this has helped.


  2. Default Gravatar
    Eugene | February 4, 2017

    You mentioned 15 years minimum term for repayment. If I pay earlier, is there any other hidden costs other than $300 exit fee?


    • Staff
      Anndy | February 7, 2017

      Hi Eugene,

      Thanks for your question.

      On the lender’s website, they only feature the $300 settlement fee. You may directly contact to verify if there are other fees involved when repaying your mortgage early.


  3. Default Gravatar
    Firsthome | March 5, 2015

    1. The offset account, is it just any standard savings account from any bank?

    2. I am buying a house with my de facto, my portion is only 200000, the rest of the payment will be paid in full, cash basis. Therefore, both our names will be on the title. Does my de factor have to be my guarantor? Or will a guarantor be needed at all?

    3. If I do decided to go to another lender at the end of say, 2 years. What will the discharge/exit fee be?

    Thank you

    • Staff
      Shirley | March 5, 2015

      Hi Firsthome,

      Thanks for your question.

      1. The offset account is provided by It will act like a regular transaction with a linked Visa debit card.

      2. A guarantor is generally required when you don’t have a deposit for a home loan. From the information you’ve provided you may not need a guarantor.

      3. There is an Early Termination Fee of $300 applicable. Be mindful that other fees may apply.

      Hope this helps,

  4. Default Gravatar
    Jacinta | February 8, 2015

    I have a 6 properties which are a group of units owned by me and brothers although they are all rented out. The loan we have currently is guaranteed by my father. Even though we have equity in them, would your bank be able to use the same guarantor to vary your LVR rates to avoid mortgage insurance?

    • Staff
      Shirley | February 9, 2015

      Hi Jacinta,

      Thanks for your question.

      Unfortunately don’t offer any guarantor options at the present time. You can compare other loans with guarantor options on this page.


  5. Default Gravatar
    lee | February 5, 2015

    Assuming all documents submitted are in order, how long does a loan application take for approval and release of funds borrowed?

    • Staff
      Shirley | February 5, 2015

      Hi Lee,

      Thanks for your question.

      For the purchase application its 4 to 6 weeks and if it is refinancing it is 3 to 4 weeks.


  6. Default Gravatar
    Lisa | February 1, 2015

    I am awaiting property settlement – I am separating from my husband. I have been told that will lend up to 80% LVR. Given my circumstances – am I able to borrow the full amount (I intend to borrow from 240 000 to 320 000) on the proviso that I am going to get at least $200 000 from property settlement to use as deposit or is there another procedure I need to follow – such as a bridging loan?
    once I complete and submit the loan application am I liable for any fees if I don’t proceed with the application?

    • Staff
      Shirley | February 2, 2015

      Hi Lisa,

      Thanks for your question. can lend up to 90% LVR of the property. Once you decide to apply with they will charge a settlement fee of $300 and in addition a valuation fee. The valuation fee for a standard property in a metropolitan area in a major city starts at $220.00 for properties valued up to $1,000,000.

      The valuation fee is not refundable and is payable when the valuation is ordered. The remaining $300 settlement fee is deducted from the loan proceeds at settlement.

      The valuation fee is required from you is we do the valuation of your property and the settlement fee will be paid by you if are on the settlement stage of your loan.


    • Default Gravatar
      Lisa | February 2, 2015

      Thanks Shirley,
      Am I able to get a bridging loan for the 10% deposit until I get my settlement?

      If so what would be the interest rate for the bridging loan, minimum loan period and how do I apply?



    • Staff
      Shirley | February 3, 2015

      Hi Lisa,

      At the moment does not offer a bridging loan, however, if you’re interested in the Dream home loan they may be able to provide you with another option.


  7. Default Gravatar
    Nola | January 27, 2015

    We currently have several properties at interest only. Do you lend to existing loans.
    And how long is the interest rate at this low rate for? Is it increasing/decreasing along with the Reserve Bank?

    • Staff
      Marc | January 27, 2015

      Hi Nola,
      thanks for the question. do offer their loans to those refinancing, and offers interest only options.

      The interest rate is a variable rate and can change at any time depending on economic factors which may or may not be in line with the Reserve Bank’s decisions each month.

      I hope this helps,

  8. Default Gravatar
    arthur | December 10, 2014

    I want to refinance. Presently with NAB. Is your minimum period of loan 15 years?

    • Staff
      Shirley | December 11, 2014

      Hi Arthur,

      Thanks for your question.

      The minimum loan term for this loan is 15 years. You can make additional repayments but bear in mind that early discharge fees will apply.


  9. Default Gravatar
    justin | November 17, 2014

    My wife and I are looking to refinance our home valued at around $1,300,000 but looking to borrow around $800,000
    do you think that is the best option. how long is the application process?
    what combined income would we need for this loan amount?

    • Staff
      Shirley | November 17, 2014

      Hi Justin,

      Thanks for your question

      Please note that we don’t recommend specific products, services or providers. Once you have completed your application online, you can generally get preliminary approval within 48 hours. Formal approval takes about 10-12 working days.

      Please use our borrowing power calculator to help give you an indication of the amount income you’ll need.


  10. Default Gravatar
    Helen | October 24, 2014

    I want to buy a warehouse for investment. Will it be the same home loan rate as residential property? Thanks.

    • Staff
      Shirley | October 27, 2014

      Hi Helen,

      Thanks for your question.

      Unfortunately do not lend for warehouse investment only residential properties. If you’d like, you can compare investment home loan on this page.

      Shirley Offset Variable

  • Interest Rate


  • Comparison Rate


  • App Fee / Annual Service Fee

    $0 / $0

  • Max LVR


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