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Young buyers capitalise on cost-saving offset accounts
According to recent National Australia Bank (NAB) data, nearly three-quarters of its home loan customers used an offset account to cut down their interest payments in 2025.
By using an offset account on a $700,000 loan at 5.42 per cent over 30 years, consumers could save themselves around $76,000 in total interest paid.
While home owners aged 40 to 60 remained the largest user base of the offset account, the data showed a significant uptick in younger Australians realising the tool’s benefit.
For customers under 35, the number of offset accounts linked to new home loans has surged by 98 per cent compared to the previous year.
NAB home lending executive Denton Pugh said the increase in younger buyers using offset accounts was driven by rate changes and other macroeconomic factors.
“Many younger home owners are coming into the market at a time of higher rates and ongoing cost-of-living pressures,” Pugh told SPI.
“Offset accounts offer a way to improve your mortgage position without being told to give up coffee, holidays or everyday comforts.”
Pugh said that with more economic uncertainty, buyers were opting to play it safe.
“When rates move around, it’s completely normal to feel unsure about what it means for your mortgage.”
“People are tired of being told to cut back. Thats why tools like the offset accounts matter.”
“Every dollar in your offset account is working for you, cutting interest and helping you pay down your home loan faster.”
According to Pugh, clients feel that having funds in an offset account not only reduces their interest, but also helps them feel more prepared for an unexpected emergency.
“Every dollar in an offset account is doing double duty.”
“It stays accessible, but it also reduces the balance your interest is calculated on. Over time, that can mean paying off your loan faster and saving thousands in interest.”
Pugh said consumers didn’t need a lump sum in the account for it to be worth having.
“An effective offset strategy is to use it as your everyday transaction account, or to split your money across multiple offsets to stay organised.”
“Whether it’s salary, bills or savings, every dollar sitting there works to automatically reduce your home loan interest,” Pugh concluded.