If you’re looking for ways to pay off your home loan faster and reduce the amount of interest you pay, an offset account could be your secret weapon. It’s a simple yet powerful tool that can save you thousands over the life of your loan—without you having to change your spending habits.
What Is an Offset Account?
An offset account is a transaction or savings account that’s linked to your home loan. Instead of earning interest like a regular savings account, the money in your offset account reduces the interest charged on your home loan.
For example, if you have a $400,000 home loan and $20,000 in an offset account, you’ll only be charged interest on $380,000 instead of $400,000. That means less interest, more savings, and potentially paying off your loan sooner!
Why Use an Offset Account?
Using an offset account can be a smarter move than putting your savings into a regular bank account. Here’s why:
✅ You reduce the interest on your loan – Every dollar in your offset account is working to lower your interest costs.
✅ You can pay off your loan faster – Because less interest is being charged, more of your repayment goes toward paying down the loan itself.
✅ You have easy access to your money – Unlike making extra loan repayments, an offset account lets you withdraw your money whenever you need it.
Offset Account vs. Redraw Facility: What’s the Difference?
Offset accounts and redraw facilities both help reduce loan interest, but they work differently:
🔹 Offset Account – Works like a regular bank account, helping reduce the interest on your loan while keeping your money easily accessible.
🔹 Redraw Facility – Lets you access extra repayments you’ve made on your loan, but there may be restrictions on how and when you can withdraw funds.
Both options can save you interest, but an offset account gives you the flexibility of using your money whenever you need it.
How to Set Up an Offset Account
If you’re taking out a new MA Money home loan, simply ask your mortgage broker to set up an offset account during the application process.
If you already have a home loan with MA Money and want to add an offset account, our friendly Customer Service team can help you get started.
About MA Money Offset Accounts
MA Money’s offset accounts are available with all home loans, except Non-Resident and SMSF loans.
Customers can have one offset account per variable loan split. If your loan is split into multiple parts, you can have multiple offset accounts—one for each split. There is a cost of $10 per offset account per month.
Customers can access set up their loan repayments to come straight from their offset account via MA Money internet banking.
Start Saving on Interest Today
An offset account is a simple but effective way to take control of your home loan. By using your savings to offset your loan balance, you can pay less interest, become debt-free sooner, and keep your money within easy reach.
