Offset Variable Home Loan

Rates and Fees verified correct on August 31st, 2016 is backed by Firstmac - one of Australia's largest and most trusted mortgage providers.

The Offset Variable Home Loan is a low rate home loan funded and underwritten by Firstmac. Firstmac has over 35 years of home loan experience and $8 billion in mortgages.

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.

Read on for a review of the loan and its features, fees and information about

Package your investment and home loans together and save

For a limited time, if you package your home loans together for both your home and investment, you'll be able to enjoy a low competitive rate for both.

Terms and conditions apply.

Interest Rate Max Insured LVR Max LVR
80% to 90% LVR (P&I only Investor)
4.41% p.a.
Comparison Rate
4.43% p.a.
90% 80%
80% to 90% LVR (P&I only Owner Occupier)
4.01% p.a.
Comparison Rate
4.03% p.a.
90% 80%
Up to 80% LVR (Investor)
4.17% p.a.
Comparison Rate
4.19% p.a.
80% 80%
Up to 80% LVR (Owner Occupier, IO)
4.05% p.a.
Comparison Rate
4.08% p.a.
80% 80%
Up to 80% LVR (Owner Occupier, P&I)
3.79% p.a.
Comparison Rate
3.81% p.a.
80% 80%
Product Offset Variable
Interest Rate TypeVariable
Comp Rate^ (p.a.)
Minimum Loan Amount$50,000
Maximum Loan Amount$2,000,000
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 fee
  • There is $0 ongoing monthly fee
  • You can make extra payments without penalties and access extra funds from the mortgage via the free redraw facility, with no minimum redraw amount
  • You can link a 100% offset account to your home loan
  • You can split your loan up to five times for free
  • 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. Read on to find out everything about this loan.

Features of the Offset Variable Home Loan

  • 100% offset account. A 100% offset account for a home loan is a useful feature that enables you to pay off your loan sooner. An offset account is a regular transaction account that has an Visa Debit card with ATM access, cheque book access and internet access that is linked to your home loan when your loan is set up and compensates for a portion of your principal. 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. The longer the loan term, the less your repayments will be, but you could be charged more interest over the life of the loan.
    • Loan to value ratio (LVR). The maximum loan to value ratio (LVR) for this loan is 90%, although keep in mind that borrowing greater than 80% will require you to pay Lender's Mortgage Insurance.
    • Repayment options. Repayments can be made either weekly, fortnightly or monthly with the Offset Variable Home Loan. Choosing how often you repay your loan can save you interest in the long run, especially if you make bi-monthly repayments. Interest-only repayments are available with this loan 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 threshold is $2,000,000 if you’re only using one asset to secure the loan (your property).
    • Accessibility. You can access your account online or by phone, 24 hours a day and 7 days a week. You can manage your money from an online interface including your loan transactions, loan statements, redraws and bill payments. You also get a VISA - issued debit card that is connected to your redraw offset that 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. There is also up to five free ATM transactions a per month with an agreed list of financial institutions.
    • RP Data Report. When you enquire about a home loan with, you will receive a complimentary RP Data Report. These reports provide details about the residential property market and provide potential homeowners with the tools they need to make an informed decision. The report includes things like 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. Most people opt to go for a standard 50/50 split between standard variable and fixed rates of interest, but offer borrowers the ability to split their interest calculations into fifths. This would be ideal if there were a large group investing together and they all wished to have their portion of the loan subject to different rates of interest accrual. Splitting your loan gives borrowers the ability to hedge their bets against negative rate movements, while also leaving room to take advantage of a reduction in lending rates.

Why you can trust

  • FirstmacThey're backed by Australian mortgage stalwart Firstmac, which has more than 35 years of experience and $8 billion in mortgages managed
  • MFAA and Standard and PoorsThey must comply with ASIC, the National Consumer Credit Protection Act, Australian consumer law, privacy laws and the ePayments code
  • They're a full member of the Mortgage & Finance Association of Australia (MFAA)
  • Their loan serviceability abilities are rated by international credit agency Standard & Poor's as being 'strong', the highest possible rating.

What happens if an online lender goes bust?


Fees you can avoid

  • 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.

Fees you can't avoid

  • 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.

Prices for the following charges vary depending on the property

  • Government fees and charges: At cost.
  • Title insurance: At cost.
  • Title search, bank cheques & agent fee: At cost.
  • Discharge outlays: At cost.

These fees vary depending on the property and can be paid either upfront or can be deducted from the total amount you wish to borrow. For instance, if you wish to borrow $200,000 and you must pay $1,000 in one-off fees and charges, you will be able to borrow $199,000. If you really need the whole $200,000 then you will have to borrow $201,000. The above example is indicative only. Speak to a home loan specialist to get a better idea of the types of fees and charges associated with your loan and property.

Are there any hidden fees?

There are no hidden fees charged by for this home loan, although there are some more minor and external costs you will want to factor in. These include government fees and fees from your existing lender if you're refinancing. states that the general government costs for refinancing are approximately $320, which cover the cost of having your mortgage title released and re-registered.

There's also a $10 fee charged if you choose to order statements from

Finally, note that the valuation fee starts at $220 for properties valued up to $1 million. This means you could pay more depending on the value of your property and where it's located. Also keep in mind that this fee is non-refundable.

Who owns is a 100% Australian owned private mortgage company and all of its funds are underwritten by Firstmac. Firstmac are also 100% Australian owned and have over 35 years of experience along with $8 billion in managed mortgages, showing their wealth of experience and security.

Does have an app?

Yes, they now have the onTrack mobile app that allows you access to your application anytime and also get notifications when the status changes and stay up-to-date with the progress on the go. You can also check the application status on a desktop with the onTrack desktop platform, previously known as Loan Tracker.

You can download the onTrack app from the App Store or Google Play.

Does the Offset Variable Home Loan have fixed rate options?

This loan allows you to split rates so that a portion of it has a fixed rate. also has a separate loan which allows you to lock in fixed rates between one and three years.

How to apply for this home loan

If you think the Offset Variable Home Loan is for you then clicking 'Enquire' or 'Go to Site' will safely redirect you 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 26 August 2016 at 11:36.

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71 Responses to Offset Variable Home Loan

  1. 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,

  2. 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.


  3. 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.


  4. 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.


  5. 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,

  6. 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.


  7. 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.


  8. 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.


  9. Default Gravatar
    Barb | October 7, 2014

    Does Dream Home Loan lend money in Regional Queensland? we are in Goondiwindi, population about 6000.

    • Staff
      Shirley | October 7, 2014

      Hi Barb,

      Thanks for your question.

      It would depend on the zoning and how much land the house is on. If it is zoned rural then unfortunately can’t assist.

      To discuss your options and eligibility, please get in touch with directly.

      All the best,

  10. Default Gravatar
    Hon | October 1, 2014

    Hi Finder,

    Is the offset account a true offset account as approved by ATO for tax deduction purposes for an investment property?

    If I withdraw any amount for a non-deductible purpose such as buying groceries or buying another house to live in, will this amount be tax deductible?


    • Staff
      Elizabeth | October 2, 2014

      Hi Hon,

      Thanks for your question.

      You will need to provide sufficient evidence of the purpose of funds in your offset account in order to claim it for tax deduction purposes. The purpose of the funds is what’s important, not what account the funds are in. So if you withdraw an amount to buy groceries or any other non-deductible purposes the amount is likely not to be tax deductible.

      Hope this has helped.


      Elizabeth Offset Variable

  • Interest Rate


  • Comparison Rate


  • App Fee / Annual Service Fee

    $0 / $0

  • Max LVR


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