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Why link your Variable Rate Home Loan to an offset account?

Pay less interest

Only pay interest on your home loan balance minus the balance in your offset account.

Use offset funds when you need

An offset account is a transaction account you can withdraw and deposit funds.

Get ahead on your home loan

Combine the interest savings of an offset account with unlimited additional repayments to pay down your variable rate loan faster.

How do I get an offset account?

Choose a scenario that describes your account setup.

You’ll need to open a new Choice transaction account in the same name (or names) as your Rocket Repay Home Loan and link it to the account. You can do this in Online Banking or the Westpac App.


Westpac App - Search Home loan offset in the Smart Search bar

Online Banking - Go to Service > Services > Account services and select Home loan offset settings

You’ll need to open one in the same name (or names) as your Rocket Repay Home Loan and link it to the account. You can do this in Online Banking or the Westpac App.


Westpac App - Search Home loan offset in the Smart Search bar

Online Banking - Go to Service > Services > Account services and select Home loan offset settings

Want a home loan with an offset account? You can apply online or request a call back. One of our home lending experts will be in touch.

Key home loan fees

Standard fees
Monthly account-keeping fee $5

This fee is waived for:


Other fees and charges may apply. Please refer to the Terms and Conditions (PDF 1MB) (PDF 450KB)

Frequently asked questions

Linking an offset account to your variable rate home loan may come with several benefits.


Instead of paying interest on your full home loan amount, you’ll only pay interest on your home loan minus the balance of your offset account. The amount you save in interest payments could add up over the life of your loan, particularly if you continue to increase the amount of funds in your offset.1


If you treat your offset as a savings account and increase its balance over time, you may pay less interest as your loan term progresses. Paying less interest will help you pay down your loan balance sooner and could reduce the life of your home loan.

A Westpac mortgage offset account offsets 100% of the balance of the linked transaction account against the balance of the linked loan.

You can still access the funds whenever you need. However, the longer the money sits in your offset account, the greater the reduction in interest over the life of the loan.

You can set up your offset account for salary payments and other income. The money you deposit will be offset against your mortgage interest.

Access your funds on a day-to-day basis just like a Choice transaction account

  • Get easy access to your money with a Debit Mastercard®
    Use your Debit Mastercard2 to shop securely online, access cash at ATMs and use PayPass™ to tap and go on purchases under $100
  • Extensive ATM network
    No ATM withdrawal fee at any major bank ATM in Australia and over 50,000 ATMs around the world via the Global ATM Alliance and partner ATMs (other fees may apply)3
  • Manage your money on the go with the Westpac App
    It’s fast, secure and convenient, with more than 100 features to help make banking easier.

A home loan is a major financial commitment. An offset account can help you pay it down more quickly.


Here's an example: Claire and Sam have a $400,000 Rocket Home Loan. They also have $40,000 in a Westpac Choice offset account linked to their home loan.


Instead of paying interest on the full $400,000, their offset account balance means they only pay interest on $360,000 ($400,000 – $40,000). If their home loan interest rate is 4.5% p.a., Claire and Sam would pay $1,376 interest in a month instead of $1,528 – saving them $152 just because they have an offset account.4


What’s more, if they need their money, they can withdraw it any time.

Both redraw facilities and offset accounts may help you reduce the amount of interest you pay on your home loan and pay your loan off sooner. However, they are very different things, as explained below.


An offset account is like a transaction account that’s linked to your home loan balance. Unlike a standard transaction account, the balance in the offset account ‘offsets’ your loan balance. As a result, interest is only calculated on the remaining loan balance. You can access the money on a day-to-day basis, but all the funds remaining in the account will offset your home loan balance.


This means the higher the offset account balance, the lower the loan balance you’ll pay interest on. We’ve included an example calculation of this in the section above.


Redraw is a different thing – it allows you to access available funds from extra loan repayments you’ve made over your required minimum monthly repayment.


If you’ve already registered for redraw and you’re ahead on your repayments, you can transfer your available funds into your preferred account online via Westpac Live Online Banking.


Redraw gives you easy same day access to funds to use for any purpose at any time. For example, if you pay an extra $5,000 into your home loan account, you reduce the interest portion of your loan. You can then ‘redraw’ that $5,000 at a point later in time to pay for something else, such as a holiday.


Consider an example where you choose to make 10 extra loan repayments of $100 each. This extra $1,000 will reduce the interest during that 10 months. Even if you take the $1000 out at the end of the 10 months, you have been charged less interest on your home loan over that period. Every repayment that you make from that point onwards is paying off more of the principal and less of the interest.


If you haven’t registered for redraw, you will first need to set it up by completing the Redraw Authority form (PDF 617KB) (PDF 66KB). This includes the full conditions for redraw.

Things you should know

Deposit Accounts for Personal & SMSF customers Terms and Conditions (PDF 450KB)

Credit criteria, fees and charges apply. Terms and conditions available on request. Based on Westpac's credit criteria, residential lending is not available for Non-Australian Resident borrowers. This information has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information and, if necessary, seek appropriate professional advice. This includes any tax consequences arising from any promotions for investors and customers should seek independent advice on any taxation matters.

Before making a decision about any of our products or services, please read all the terms and conditions. Fees and charges apply and may change.

  1. Offset effect is only calculated on the balance in the offset account, any change to the balance throughout the calendar month will impact the overall offset effect on the interest charge.
  2. Debit Mastercard: You need to be at least 14 years of age, and have an Australian residential address to be eligible for the card. If you're not eligible for a Debit Mastercard, apply for a Handycard to access your account.
  3. Global ATM: A 3% Foreign Transaction Fee applies to overseas debit card withdrawals. A list of Global Alliance members is available. To ensure access to savings and/or cheque account funds when overseas obtain a Debit Mastercard®.
  4. The calculations used in this scenario are for illustrative purposes only. The calculations do not represent actual rates or products.


Offset is available on a Rocket Repay Home Loan or a Rocket Investment Loan. The same offset transaction account cannot be linked to multiple Rocket Loans. The linked offset transaction account must be in the same name(s) as the loan. Only one offset transaction account can be linked to each Rocket Loan. Terms and Conditions available on request. This information does not take your personal objectives, circumstances or needs into account. Consider its appropriateness to these factors before acting on it. Read the Terms and Conditions before deciding. Unless otherwise specified, the products and services described on this website are available only in Australia from Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.


#Premier Advantage Package: Conditions of Use and $395 annual package fee applies. You must either hold or be approved for a Westpac Choice transaction account in order to qualify and continue to receive the benefits of the Premier Advantage Package. Applicants must have a Westpac Choice transaction account linked to the home loan at the time of settlement and must keep this account open for 60 days after settlement. Before deciding to acquire a Westpac Choice account, read the terms and conditions, and consider whether the product is right for you. Tax consequences may arise from this promotion for investors and customers should seek independent advice on any taxation matters.
Premier Advantage Package Conditions of Use (PDF 461KB)


Redraw only applies if:

  1. you have requested redraw and all of you sign the Loan Offer or the redraw authority form we give you or later authorise us to activate it; and
  2. the original amount of your loan has been Fully Drawn; and
  3. you pay any applicable fees.


Redraw will not apply during any period that we have allowed you to make an Interest Only in Advance repayment, or if you have a Bridging Loan.

During a fixed rate home loan period you can only redraw your available funds up to the prepayment threshold, that is, the amount we allow you to prepay during the fixed rate period without incurring a prepayment

Any one of you can cancel the redraw option, If you wish to do so, please contact us.

If you have cancelled the redraw option, you can reactivate it by giving us a new redraw authority signed by all of you.

We may refuse any request for a withdrawal at any time. We may also cancel the redraw option at any time, but will tell you if we have done so.