Did you know Australians can save thousands on mortgage interest using multiple offset accounts?
While single offset accounts are common, multiple offset accounts offer greater flexibility and savings.
This blog helps you understand how multiple offset accounts work, why they can be beneficial, and which Australian banks offer this feature.
What Are Multiple Offset Accounts?
An offset account works by reducing the interest payable on your mortgage. The balance in your offset account is subtracted from your loan balance when calculating interest.
For example, if you have a $500,000 mortgage and $50,000 in your offset account, you’ll only pay interest on $450,000.
Multiple offset accounts take this concept further by allowing you to link several separate accounts to your mortgage. Each account’s balance contributes to reducing your interest payments.
With a $500,000 mortgage and $30,000 in one offset account and $20,000 in another, you’d only pay interest on $450,000.
Why Use Multiple Offset Accounts?
Why consider multiple offset accounts? They offer several advantages for managing finances and reducing mortgage costs.
1. Better Financial Control
With multiple offset accounts, you can assign each one a purpose — for example, one for everyday spending, another for savings, and a third for emergencies. It’s a simple way to keep track of your budget while still reducing mortgage interest.
2. Greater Interest Savings
The more money you hold across your offset accounts, the more interest you save. Even funds you don’t intend to spend immediately — like emergency savings or future holiday budgets — can help lower your mortgage costs.
3. Improved Cash Flow Organisation
Distributing your money across several accounts lets you manage your finances without losing the interest-reducing benefits. For instance, allocating funds for bills, school fees, or business expenses becomes easier and more structured.
4. Joint Borrower Flexibility
For couples or co-borrowers, multiple offset accounts offer a cleaner way to handle shared and individual expenses. Each borrower can contribute to the mortgage while still maintaining some financial independence.
Australian Banks Offering Multiple Offset Accounts
Not all lenders provide multiple offset accounts. Here’s a comprehensive list of those that do:
| Bank | Number of Offset Accounts Allowed | Details |
|---|---|---|
| Macquarie Bank | Up to 10 | Free offset accounts with Offset Home Loan package |
| Commonwealth Bank | Multiple | Through Everyday Offset accounts |
| NAB | Multiple | Available with variable rate loans |
| ANZ | Multiple | Through ANZ One offset account |
| Westpac | Multiple | Via Rocket Repay Home Loan or Investment Loan |
| Bankwest | Up to 9 | Offset Transaction Accounts |
| Bendigo Bank | Up to 6 | Per loan account with Complete Home Loan |
| Athena | Up to 10 | Cash Stashes” plus primary offset account |
| ME Bank | Up to 8 | With their Flexible Home Loan |
| St. George Bank | Up to 99 | Linked to a single mortgage |
A home loan broker in Melbourne can confirm which banks suit your mortgage needs.
Banks That Don’t Offer Multiple Offset Accounts
Some banks offer a single offset account or none at all. Others don’t advertise multiple offset capabilities:
- Bank Australia – One offset account per loan (fixed loans only).
- Adelaide Bank – Offers offset, but doesn’t mention multiple accounts.
- The Mutual Bank – Offset available, but no mention of multiple accounts.
Also, 86400 has been integrated into Ubank, so look to Ubank’s offerings instead.
How Multiple Offset Accounts Work In Practice?
When you have multiple offset accounts, they operate collectively against your mortgage. If you owe $300,000 on your home loan and have $40,000 spread across three offset accounts, interest will be calculated on just $260,000.
The key advantage is flexibility in how you manage your money. You might have:
- One account for daily expenses
- Another for emergency funds
- A third for holiday savings
- A fourth for school fees or other significant expenses
Each dollar in these accounts reduces your mortgage interest while remaining fully accessible when needed.
Important Considerations Before Setting Up Multiple Offset Accounts
Before opting for multiple offset accounts, several factors need attention.
Not all lenders offer this feature, and availability is often limited to variable-rate loans, though some fixed loans may include partial offsets.
Fees can apply, particularly for full offset accounts, and multiple accounts may increase costs. Some lenders charge per account, eroding savings if balances are low.
Mortgages with offset features may have higher interest rates, so compare rates carefully.
Offset accounts also require sufficient deposits to deliver meaningful savings, which may not suit early-stage borrowers.
A local mortgage broker in Melbourne can assess whether this strategy aligns with your circumstances.
Making the Most of Multiple Offset Accounts
To maximise the benefits of multiple offset accounts:
1. Keep as much money as possible in your offset accounts for as long as possible.
2. Consider using offset accounts instead of separate savings accounts, as the interest saved on your mortgage typically exceeds what you’d earn in a savings account.
3. Have your salary and other regular income deposited directly into an offset account.
4. Use credit cards for monthly expenses (paying the full balance each month) to keep funds in offset accounts longer.
Why Consult A Home Loan Broker In Melbourne?
Guiding through multiple offset accounts requires expertise. Every borrower’s needs differ, and lender terms vary. A local mortgage broker in Melbourne assesses your financial goals, compares lenders, and identifies loans with the best-offset features.
They explain fee structures, interest rate impacts, and eligibility criteria, ensuring your mortgage aligns with long-term objectives. Brokers also streamline applications, saving you time and stress.
Start Saving With Credit Hub
Want to save thousands on your mortgage with multiple offset accounts? Credit Hub, your trusted finance broker in Melbourne, simplifies the process. Our dedicated personal managers compare loans from over 35+ lenders, finding the best offset account options for you.
With our advanced online platform, you can access competitive rates, like 5.59% for home loans, and free expert advice. Call Credit Hub at 1300 782 944 or apply now to maximise your savings!
Disclaimer:
The information presented by staff or employees of Credit Hub and its associated companies is provided for general informational purposes only. We do not guarantee the accuracy, completeness, or timeliness of the data or views presented. Audience members should conduct their own research and verify any information before relying on it. Credit Hub and its associated companies are not liable for any errors or omissions, or for any actions taken based on the information presented.