Gateway’s 100% Loan Offset Account is a great way to reduce the interest on your variable home loan, whilst still giving you the flexibility of 24/7 access to your funds when you need them.
Working as a transaction account linked to your home loan, the Gateway 100% Loan Offset Account allows you to make deposits or withdrawals as you would with a regular transaction account, however giving you the added benefit of making your money work harder for you and saving you money on your home loan.
Our 100% Loan Offset Account can reduce interest costs on your variable home loan and help you pay off your loan sooner.
Start your quick online application today or chat to our helpful team.
An offset account is a transaction account which is linked to your eligible variable home loan that offsets the balance in the transaction account against the balance of your home loan. In other words, the amount of money in your offset account is subtracted from the balance of your home loan. The figure that is left after subtracting your offset account balance from your home loan balance is the amount you pay interest on.
For example, if your home loan account has a balance of $400,000 and your offset account balance is $25,000, you will only be paying interest on $375,000.
While your interest payable reduces, your minimum repayment doesn’t change – so more of your repayment is going toward the principal amount, not to interest. As you’re paying down the principal amount of the loan faster, this can reduce the length of your loan and the total amount of interest you need to pay.
Maximise your offset account by having your salary deposited into your account every pay day. It doesn’t matter if you have thousands of dollars or only a small amount saved - every dollar in your offset account reduces the interest you’ll pay on your home loan.
As well as offsetting your home loan balance, an offset account offers all the features and flexibility you’d expect from a transaction account.
A linked Gateway Visa Eco Debit Card enables you to access your funds when and where you need them. Your money isn’t locked away or difficult to access, ready to use when you need. As it functions like a regular transactional account, you can use your Offset account and Visa Debit Card to shop online, in-store or pay for your subscriptions like Netflix and Spotify.
You can also manage your money with complete visibility and make payments through our Gateway 2go mobile app and Online Banking.
Both Offset and Redraw help reduce the amount of interest you pay on your home loan and enable you to pay off your home loan faster. However, if you’re looking for flexibility and the ability to transact and access your money quickly and easily when you need it, an Offset account could be a better option for you.
Redraw, on the other hand, may be the better option when you have a larger sum to pay down your home loan which may only need to access in case of an emergency.
| Offset Account | Redraw |
| ✓ Reduce the amount of interest paid on your loan ✓ Potentially pay off your loan sooner ✓ Have easy access to the funds in your account |
✓ Reduce the amount of interest paid on your loan ✓ Potentially pay off your loan sooner |
Offset Accounts function as everyday accounts which can be used for deposits, transactions, bills, shopping and other day to day functions.
Redraw, on the other hand, may be the better option when you have a larger sum to pay down your home loan, which you may only need to access in case of an emergency. A Redraw facility isn’t an account like a 100% Offset Account, rather it’s a feature of your home loan. Redraw allows you to withdraw funds from your loan, specifically additional payments which are any payments you’ve made beyond your normal scheduled loan repayments.
Savings & Bank Accounts |
|
|---|---|
| Monthly Fee : | $0 |
| Annual Fee : | $0 |
| Minimum Amount : | $0 |
| Funds Available : | At call |
| Online & Phone Banking : | Yes |
| Debit Card : | Yes |
| Branch Access : | Yes |
| BPAY® : | Yes |
| Periodic Payments : | Yes |
When you sign up for our 100% Offset Account you’ll be making your money work harder. Each loan repayment you make contributes more to your principal loan amount due to the reduced amount of interest charged.
No hidden fees
At Gateway Bank, what you see is what you get. We’re always 100% transparent about our fees, costs and services and you’ll know exactly what you’re getting from day one. Read more about our fees.
Offset your home loan
Offsetting your home or investment loan with a loan offset account is a great way to save on your loan long-term. Reduce the amount of interest paid and potentially reduce the length of your loan when you link your offset account to your eligible Gateway Bank home loan, construction loan or land loan.
Easy Access
Your funds won’t be locked away or require a minimum withdrawal amount — they’ll be available to you just as easily and accessibly as any other transaction account. Use your loan offset account to pay the bills, shop, send money to friends and transfer funds between your accounts.
When you bank with Gateway you get access to exceptional customer service and our customer-first philosophy which only comes from using a customer-owned bank. You also gain access to the features, benefits and security you expect from a larger bank, including our handy Gateway 2go app.
The Gateway 2go app has a wide range of features for on-the-go banking including:
To start using the Gateway 2go app simply head to the app store and search “Gateway 2go”.
Your 100% Offset Account can be linked to one of our exclusive Visa Eco Debit Cards.
Get your Visa Eco Debit Card when you sign up for a 100% Offset Loan with Gateway Bank.
How do I apply for a 100% Offset Account?
You can add the option of a 100% Offset Account when applying for an eligible home loan. The offset account would be opened, if requested, when your loan application is successful. If you already have an eligible home loan with Gateway and would like to open a 100% Offset Account, you can open this account directly on Online Banking, or contact our friendly team for assistance. For more information, see our Existing Borrowers page.
Which loans can I link a loan offset to?
You can use a loan offset account to offset a range of loans including both owner occupied home loans and investment loans. Here is our range of loans which can be linked to a 100% Offset Account:
Our 100% Offset Loans can be used for a range of competitive home, land and construction loans for both owner occupied and investment properties. Explore our loans today to find the right one for you and link your Offset Account to save on interest and shorten the length of your loan.
What can I use my loan offset account for?
You can use your loan offset account for all the usual things you would do with an everyday transaction account. Your money is just as easily accessible as it would be with any other transaction account and you can link your 100% Offset Account to a Gateway Eco Debit Card for online and in-store transactions. You can have your wages deposited into it, you can set up online banking, make everyday purchases, transfer money to friends, all while actively reducing the amount of interest paid on your loan.
Your account can be linked to a Gateway Visa Eco Debit Card for everyday use and easy access. You can use your loan offset account for:
Your 100% Offset Account can be used like any other bank account, with the benefit of retaining easy access to your funds while simultaneously reducing the interest paid on your loan and reducing the length of your loan.
