Make your money work smarter. An offset account reduces the interest you pay on your home loan.
Reduce the amount of interest you pay on your home loan
Key features
Key features of an offset facility.
The offset facility is available using our Everyday account.
1
Full offset16 facility on variable home loan or partial offset17 facility on fixed home loan
2
Deposit your salary and make the most of your daily balance
3
Non interest earning account means non-taxable
4
Maintain all the flexibility of a transaction account
5
No minimum balance to start offsetting
6
Manage your money with multiple transaction accounts with optional offset facility to separate your funds
How it works
How an offset facility works
An offset facility is used to reduce (or offset) the amount of interest you pay on your home loan.
Our variable home loans may entitle you to a full offset16 facility, where our fixed home loans may entitle you to a partial offset17 facility
The balance of the transaction account with an offset facility is calculated daily. The home loan interest calculation works as follows:
Full offset
In calculating the interest payable on your loan account, your loan account balance is fully offset by the balance of your linked Everyday Account.
This means that you only pay interest on the difference between your loan balance and your offset account balance (your linked Everyday Account).
Partial offset17
The balance of your linked Everyday Account helps to determine the interest payable on your home loan.
A portion of your home loan account that is equal to the balance of your linked Everyday Account is charged interest at a reduced rate (currently 2.25% p.a.), while the remaining balance of your home loan account is charged at the regular (full) home loan rate.
How to apply or find out more
Online
Apply online for an Everyday Account
Call us
Call 1300 236 344 or you can request a call from us
At a branch
View our Coronavirus page for important information about visiting our branches.
An example
Full vs Partial
The example3 below helps demonstrate the difference between full and partial offset.
Loan amount is $300,000.
Loan interest rate: 5.00%
Partial offset rate: 2.25% p.a.
Transaction account with an offset facility balance: $10,000
Full offset
Discount offset loan rate: 0%
Interest charged first year (no offset): $300,000 x 5.00% = $15,000
Interest charged first year (with full offset): ($300,000 - $10,000) x 5.00% = ($290,000 x 5.00%) = $14,500
$15,000 - $14,500 = $500
Interest saved with full offset over year = $500
Partial offset
Discounted offset loan rate: 2.25% p.a.
Interest charged first year (no offset): $300,000 x 5.00% = $15,000
Interest charged first year (with partial offset): ($10,000 x 2.25%) + ($290,000 x 5.00%) = $225 + $14,500 = $14,725
$15,000 - $14,725 = $275
Interest saved with partial offset over year = $275
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Additional information
3. This is an example for illustrative purposes only and may not represent actual interest rates.
16 Full offset facility is available for Bendigo Complete Home Loan for both fixed and variable loans. Offset facility can only be linked to one loan at any one time. A maximum of 6 offset facilities can be linked per loan account. Linked offset facility must be in same customer name/number.
17 Partial offset accounts are not available on the Complete Home Loan. Our new Bendigo Complete Home Loan offers 100% offset on both variable and fixed loans.
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