At Coastline Bank, we understand that every dollar matters when paying off your home loan. That's why we offer a low monthly offset account - a smart feature designed to help you save money by reducing the interest paid on your mortgage.

Whether you're buying a home or refinancing, here's how an offset account can cut your mortgage costs and make your home loan work harder for you.

What is an offset account, and how does it work?

An offset account is a regular transaction account that's directly linked to your home loan. Instead of earning interest, the balance in your offset account serves to reduce the balance of your home loan. Interest is then calculated on the lower amount, reducing the amount of interest you pay each month. This means that the more money you keep in your offset account, the less you'll pay in interest on your home loan.

How does it reduce my interest?

The interest on your home loan is calculated on the loan balance minus the amount in your offset account. For example, if your home loan balance is $400,000 and you have $50,000 in your offset account, interest will only be charged on $350,000. This reduces your overall interest costs, allowing you to save money and pay off your loan faster.

Can I still access my money?

Yes! One of the key benefits of an offset account is that you have full access to your money. You can deposit, withdraw, and manage your funds just like a regular transaction account, all while reducing your home loan interest.

The benefits of an offset account

There are plenty of good reasons to use an offset account. Some of the most popular ones include:

Save on interest

The more you keep in your offset account, the less interest you'll pay on your home loan. Over time, this can translate into significant savings, and you may pay off your home loan sooner.

Flexible access to your funds

Unlike some loan features that tie up your funds, an offset account gives you full access to your savings. You can deposit and withdraw money as needed, making it a convenient way to manage your day-to-day finances while still benefiting from reduced interest on your loan.

Low fee, big savings

Our offset account comes with a small $5 monthly fee, but it's only applicable if your membership balance is below $5,000. This means you can still enjoy the benefits of reducing your loan interest while keeping costs minimal. Every dollar in your account helps lower your interest, maximising your savings.

Potential tax benefits

While a traditional savings account earns interest, any interest you earn will also attract taxes. While you won’t earn interest on your offset account, funds are reducing the interest on your loan home loan, which means you're still saving money, nor will you be taxed on the savings.

Plus, there's no need to alter your spending habits

Simply maintaining your savings in your offset account automatically reduces the interest on your mortgage. It's a low-effort, high-impact way to save money and pay off your mortgage faster.

By using an offset account, you can make your savings work harder for you, cutting interest and helping you to own your home sooner.

Apply for a Coastline home loan with an offset account

Start saving on your mortgage today.

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