An offset account can save you thousands of dollars in home loan interest — but only if the loan behind it is a good one. The right offset loan pairs a sharp interest rate with low fees and an offset account that actually works the way you need it to. The wrong one charges you a package fee every year for a feature you barely use.
We compared variable-rate home loans with a 100% offset account and picked eight worth a closer look. Rates below are advertised rates checked on 6 November 2026, and they change often, so confirm the current rate with the lender before you apply. For the basics of how an offset works, Moneysmart’s guide to mortgage offset accounts explains it in plain language.
How we picked these offset accounts
Every loan on this list has a 100% offset account, which means the full balance in the account comes off your loan balance before interest is worked out. We ranked them on the advertised variable rate, the fees you pay for the offset feature, how many offset accounts you can link, and whether the lender is easy to deal with. Rates are for owner-occupiers paying principal and interest unless we say otherwise.
1. Police Credit Union — Low Rate Home Loan
Best for: the lowest rate.
At 5.89% p.a. (comparison rate 5.93% p.a.), this is the cheapest variable rate with an offset account in the comparison tables we checked. The catch is eligibility: it is a first home buyer product for loans with an LVR under 80%, so it suits buyers with a decent deposit rather than everyone. If you qualify, it is hard to beat on rate alone — but check the fees and features against the rest of this list before you lock in.
2. Well Money — Well Ultimate
Best for: borrowers with a low LVR.
Well Money’s Well Ultimate sits at 6.06% p.a. (comparison rate 6.10% p.a.) for loans with an LVR up to 60%. That makes it a strong pick if you have plenty of equity or a large deposit. The trade-off is the 60% LVR cap: if you are borrowing more than 60% of the property’s value, this rate is not available to you.
3. Commonwealth Bank — Digi Home Loan
Best for: the lowest rate from a big four bank.
CommBank’s Digi Home Loan is priced at 6.09% p.a. (comparison rate 6.22% p.a.) for owner-occupiers on principal and interest with a maximum LVR of 60%. It comes with one offset account and no annual package fee, which keeps the cost simple. It is an online-first product, so if you want branch service or a broker to manage the loan, look at CommBank’s standard variable loans instead — but on rate alone, it is the cheapest big-bank offset loan we found.
4. Bank of Us — Topline Home Loan
Best for: a no-fee offset account.
Bank of Us charges 6.24% p.a. (comparison rate 6.24% p.a.) on its Topline Home Loan, with a $0 offset fee. That matters more than it looks: a $395 annual package fee at another lender wipes out a chunk of the interest you save, especially if your offset balance is small. If you want the offset feature without paying for it every year, this is the cleanest option on the list.
5. People First Bank — Basic Variable Home Loan with Offset
Best for: a low monthly fee and plenty of offset accounts.
People First Bank (formerly People’s Choice) offers its Basic Variable Home Loan with offset at 6.34% p.a. (comparison rate 6.35% p.a.), with an $8-a-month offset fee. It also allows more than 10 linked offset accounts, so you can split your money into buckets for bills, holidays and an emergency fund and still have every dollar count against your loan. That combination of a low fee and flexible buckets is rare.
6. Macquarie — Offset Package Home Loan
Best for: multiple offset accounts.
Macquarie’s Offset Package Home Loan is priced at 6.34% p.a. (comparison rate 6.59% p.a.) with a $248 annual package fee, and it lets you link up to 10 offset accounts. If you like to organise your money into separate accounts for different goals, Macquarie is one of the best set up for it. The package fee is the price of that flexibility, so do the maths: if your offset balances are small, a cheaper loan with one offset account may save you more overall.
7. Bank Australia — Offset Home Loan
Best for: a customer-owned bank.
Bank Australia’s Offset Home Loan comes in at 6.43% p.a. (comparison rate 6.62% p.a.) with a $199 annual fee. As a customer-owned bank, its profits go back to customers rather than shareholders, which appeals to borrowers who care about where their bank’s money goes. The rate is competitive, and the $199 annual fee is lower than the $395 packages charged by several big banks.
8. Great Southern Bank — Offset Variable
Best for: no annual fee from a larger lender.
Great Southern Bank’s Offset Variable loan is priced at 6.54% p.a. (comparison rate 6.60% p.a.) with a $0 annual fee. The rate is higher than the cheapest loans on this list, but there is no yearly fee eating into your savings, and you are dealing with a larger lender with a long history. It suits borrowers who want a straightforward offset loan without package fees or monthly charges.
How to choose the best offset account for you
Check it is a 100% offset. Most offset accounts on the market are 100%, which means every dollar in the account reduces the loan balance charged interest. Some older or fixed-rate products only offset part of your balance, so confirm this before you apply.
Weigh the rate against the fee. A loan at 6.24% with no fee can beat a loan at 6.09% with a $395 annual package fee once your offset balance is taken into account. Work out the interest you would save on your actual offset balance, then subtract the annual fee to see which loan leaves you better off.
Think about how many offset accounts you need. If you keep one pool of savings, a single offset account is fine. If you want separate buckets for bills, holidays and emergencies, pick a lender that allows multiple linked offsets — Macquarie and People First Bank are the standouts here.
Check your offset is actually linked. An ASIC review found that many offset accounts were not set up properly — in more than half of the cases it examined, the offset account had been opened but never linked to the loan, so borrowers paid interest they did not need to pay. Once your loan settles, check your banking app or loan statement to confirm the offset is linked, and check again after any refinance.
Remember the rate is not the whole story. A variable rate can move up or down, and a low advertised rate may come with conditions such as a maximum LVR or an online-only application. Read the product terms and compare the comparison rate, which includes most fees and gives a fairer picture of the true cost.
For a deeper explanation of how an offset account works and when it pays off, read our guide What Is an Offset Account? A Simple Guide. If you are weighing an offset against redraw, see Offset Account vs Redraw Facility: Which Is Better?. And if you want to put your offset to work, our guide How to Pay Off Your Mortgage Faster: 7 Simple Ways shows how to make the most of it.
Frequently asked questions
Do offset accounts reduce your monthly repayments?
Usually not. Your minimum repayment stays the same, but more of each repayment goes towards paying down the loan itself and less goes to interest, so the loan is paid off sooner.
Can I have more than one offset account?
It depends on the lender. Most allow only one offset account per loan, but some — including Macquarie, NAB and Westpac — allow up to 10, CommBank allows up to 99 on its Standard Variable loan, and People First Bank allows more than 10. Check the product terms before you apply.
Do you pay tax on money in an offset account?
No. Money in an offset account earns no interest, so there is nothing to declare as income. The benefit is the interest you do not pay on your home loan, and that saving is not taxed.
Is an offset account better than a redraw facility?
It depends on how you use it. An offset account gives you easier access to your money — it works like an everyday account with a debit card — while redraw means taking back extra repayments you have already made, which some lenders restrict. Offset loans usually carry a slightly higher rate or a fee, so compare the costs before you decide.
Do offset accounts work with fixed-rate home loans?
Rarely, and usually only as a partial offset. Most offset accounts are linked to variable-rate loans. If you want an offset, a variable loan — or a split loan with a variable portion — is the usual way to get one.
