Best Offset Accounts for Home Loans in Australia 2026

People First Bank Basic Variable Home Loan is the best offset home loan in this shortlist for an owner-occupier who wants low ongoing costs. Its 100% offset has no monthly administration fee on a newly opened Basic Variable loan. The advertised variable rate is also lower than the other two options for the scenario below.

The fictional borrower has a $600,000 loan against a $1.2 million home, with principal and interest repayments over 30 years. They keep $40,000 in one offset throughout the year, want debit-card access and put the whole loan on a variable rate. Fixed portions, investment purpose or a different lender quote can change the choice.

Top Offset Accounts for Australian Home Loans in 2026

1. People First Bank Basic Variable Home Loan

This loan ranks first for this borrower because its published rate is 5.99% per annum, with a 6.00% comparison rate. The eligible offset counts the full balance against the loan. A new Basic Variable loan has a $0 application fee and $0 monthly loan administration fee.

The separate Offset Account has debit-card payments and digital banking access. Its fee schedule waives the monthly offset administration fee for newly opened Basic Variable loans. That suits a borrower who keeps salary and emergency savings available without paying an annual package fee for unrelated benefits.

The limitation is loan structure: this offset links to the Basic Variable Home Loan, so it doesn’t offset a fixed portion. People First Bank ranks below a fixed-compatible option when fixed repayments are a requirement. A lower competing quote or different eligibility outcome can also move it from first place.

2. Qantas Money Offset Home Loan

Qantas Money’s offset loan is the stronger choice when offset access must extend to an eligible fixed loan. It has up to six 100% offset accounts per loan, including fixed and variable products for owner-occupiers and investors. Its accounts have debit-card access and bill payments.

For the fictional owner-occupier at a 50% loan-to-value ratio (LVR), the displayed variable rate is 6.03% per annum. The Offset Home Loan comparison rate is 6.26%. Its $15 monthly service fee totals $180 annually per loan account, even when several offsets link to that account.

Qantas Money ranks second because its rate and ongoing fee exceed the first option in the variable-rate scenario. Establishment and application fees also apply, alongside settlement charges. Fixed-compatible offset access can justify its position above a cheaper variable-only product when the borrower actually needs that feature.

3. IMB Essentials Home Loan

IMB’s Essentials loan suits a borrower who wants a variable home loan with full offset and free online redraw. IMB Bank’s published owner-occupier rate is 6.09% per annum at an LVR of 70% or less. Its comparison rate is 6.20%.

The Essentials loan has a $10 monthly fee, or $120 annually, and uses an IMB Everyday or Everyday Unlimited account for 100% offset. Everyday Unlimited has a $6 monthly fee, waived when its balance stays above $2,000 for the month. The loan also permits unrestricted additional repayments, so a borrower can keep accessible money in offset and direct longer-term surplus into repayments.

IMB Essentials ranks third because its higher advertised rate outweighs its lower ongoing loan fee against Qantas Money in the stated scenario. Its split-loan option preserves offset on the eligible variable portion. A better individual quote or a need for IMB’s lending and banking arrangements can change its fit.

Compare Offset Home Loans by Total Cost and Features

Compare home loans with offset accounts using the same loan purpose, repayment type and daily cash balance. The cheapest home loan with offset is the one with the lowest relevant total cost for that borrower.

All rates below are per annum for new owner-occupier principal and interest borrowing at 50% LVR. Comparison rates describe each lender’s prescribed example, not the fictional $600,000 loan. They don’t include a personalised offset balance.

Product	Variable interest rate	Comparison rate	Ongoing loan/offset cost	Offset and eligible portion	Linked accounts and access
People First Bank Basic Variable	5.99%	6.00%	$0 monthly loan administration and eligible offset administration	100%, Basic Variable loan	One account used in this scenario. Multiple offsets are recognised in the fee schedule. Debit card, digital banking and branch transactions
Qantas Money Offset	6.03%	6.26%	$15 per loan account per month, or $180 annually	100%, eligible variable and fixed Offset Home Loans	Up to six per loan. Debit card, bill payments and withdrawals
IMB Essentials	6.09%	6.20%	$10 monthly loan fee, or $120 annually. Everyday Unlimited adds $6 monthly unless the balance stays above $2,000 for the month	100%, eligible variable Essentials loan	One linked transaction account used here. Everyday or Everyday Unlimited banking, including debit-card access

The account counts used for People First Bank and IMB are scenario assumptions. They aren’t promises of a maximum account allowance. Qantas publishes a six-account limit.

An illustrative annual interest-plus-fee comparison keeps the loan and offset balances constant. It excludes repayments reducing principal, establishment costs, transaction charges and one-off incentives. On a $560,000 interest-bearing balance, People First Bank costs $33,544 before those excluded items.

Qantas Money costs $33,948 including the $180 annual service fee. IMB Essentials costs $34,224 including its $120 annual loan fee, with the Everyday Unlimited monthly fee waived at the assumed $40,000 balance. These estimates explain the order for this scenario, without predicting an actual year’s saving.

An eligible $600,000 IMB purchase or refinance loan can receive a $3,000 cashback, which can change the first-year result. The offer has eligibility and settlement requirements, and 50% is repayable if the loan is discharged within 12 months. Compare incentives and switching charges separately for the expected holding period, because this shortlist ranks recurring costs.

Qantas Money’s rates page announces a further 0.25 percentage-point variable-rate increase. The figures here use its currently displayed rate. That change increases its annual interest in the constant-balance example by $1,400 once it applies.

A free offset account can still sit on a higher-cost loan. A 0.20 percentage-point rate difference on $560,000 costs about $1,120 annually, which exceeds a $180 annual feature fee. Conversely, a paid offset can earn its cost when its loan rate and sustained balance produce a lower total.

For switching costs beyond ongoing interest, use the refinance requirements before treating a small annual difference as a reason to move.

Check a Named Lender’s Offset Availability

Offset availability belongs to a named loan product and eligible portion. A transaction account or redraw facility alone doesn’t establish that it offsets interest.

Lender	Current product position	Offset treatment and eligible portion
Unloan	Its home-loan features page explicitly excludes offset	Redraw is available. It isn’t a separate offset account
MyState Bank	Special Residential Home Loan has an offset facility	100% offset. Its Basic Variable and Fixed Rate product descriptions exclude offset
People’s Choice	Current product destination is People First Bank	Basic Variable Home Loan links to a 100% Offset Account. Current new-loan terms differ from older package arrangements
Bank of Queensland (BOQ)	Clear Path Variable Home Loan includes mortgage offset	100% on eligible variable lending. Deposit terms also cover one-year fixed eligibility. Only one offset account links to a housing loan
Up	Up Home includes genuine offset accounts	Free 100% offsets on eligible accounts. Up Home is for owner-occupiers, with variable and fixed options
RAMS	Closed to new lending. Existing loans are now serviced by Pepper Money	The historical Action with Offset product isn’t a current new-loan recommendation
IMB Bank	Essentials Home Loan	100% through an eligible Everyday or Everyday Unlimited account on variable lending
BankSA	Standard Variable Rate Home Loan	Full offset on the eligible variable loan. Its fixed-loan conversion form excludes interest offset
loans.com.au	Eligible variable home loans can add an offset sub-account	100% offset sub-account. The published add-on increases the loan rate by 0.10 percentage points
Qantas Money	Offset Home Loan	Up to six 100% offsets on eligible variable and fixed loans. Basic Home Loan doesn’t include the feature
National Australia Bank (NAB)	Tailored Home Loan, variable rate with offset	Up to ten 100% offsets on the variable portion. Fixed Tailored lending doesn’t have the same offset arrangement
Bank of Melbourne	Standard Variable Rate Home Loan with linked Complete Freedom accounts	Up to ten 100% offsets on the variable portion. Its fixed-loan conversion form excludes interest offset

MyState’s Offset Account carries an $8 monthly account fee, or $96 annually. It remains an offset account even though its separate Glide transaction account is fee-free. The account name and eligible loan decide which balance reduces interest.

For NAB, the current Tailored variable product page lists a $12 monthly loan fee, or $144 annually. The separate Choice Package costs $395 annually and waives covered monthly loan fees. Use the arrangement actually quoted, because the product fact sheet still shows an older $8 monthly figure.

Bank of Melbourne’s Complete Freedom account has no account-keeping fee when used as described on its offset page. Its optional Advantage Package costs $395 annually. Packaging a fixed loan doesn’t make that fixed portion eligible for full offset.

BankSA’s refinance page mentions a partial fixed offset, while its loan conversion form excludes offset on fixed loans. For a fixed portion, use the facility expressly included in the borrower’s contract. Don’t apply the Standard Variable full-offset promise to fixed lending.

The lender pages and terms linked in this section establish those product distinctions: Unloan features, MyState products, BOQ Clear Path and Up offset accounts.

For the other named arrangements, use RAMS customer information, BankSA’s offset account, loans.com.au’s variable offset option, NAB Tailored variable lending and Bank of Melbourne offset terms.

For the broader eligibility distinctions, read the offset account policy guide. Investment-purpose ownership and transaction records belong in the investment property offset guide.

Decide Whether an Offset Account is Worth It

Offset accounts are worth it when the balance held over time saves more interest than the extra rate and fees cost. Flexible access is the main additional benefit: cash stays available while reducing eligible loan interest.

Moneysmart’s offset guidance explains why the daily balance and loan costs decide the result. Use the expected average daily balance, because a salary deposit that leaves quickly has less effect than a lasting cash reserve.

Consider a separate illustrative comparison within Qantas Money’s products. Its published Basic and Offset loans have the same interest rate for the same eligible scenario. The Offset loan adds a $15 monthly service fee, while the Basic loan has no ongoing monthly service fee.

At 6.03%, a constant $40,000 offset balance reduces annual interest by about $2,412. After the $180 annual fee, the illustrative net reduction is $2,232 against keeping that cash outside a fee-free Basic loan. This assumes identical setup costs and no extra repayments or interest earned elsewhere.

With only $2,000 held all year, the interest reduction is about $120.60. The $180 fee leaves the offset option about $59.40 worse off. At that rate, approximately $2,985 held throughout a full year covers the fee alone.

If $40,000 stays in the account for just three months, the simple annual fraction produces about $603 in interest reduction. Subtracting a full year’s fee leaves $423. Daily calculations, later rate changes and the actual days held alter that estimate.

This comparison assumes cash remains outside the Basic loan. Putting the same surplus into a loan with redraw can also reduce interest. The decision then includes access conditions, rather than counting the offset balance as an extra saving against money already repaid.

Offset also has drawbacks. Spending the cash removes the interest benefit, fees continue when the balance is low and variable loan repayments can change. A separate offset account helps preserve liquidity, but convenient debit access can make savings easier to spend.

For a savings account comparison, use the interest earned after applicable tax against avoided home-loan interest and additional costs. Money above the linked loan balance doesn’t reduce that loan’s interest further. For investing, compare risk and access needs as well as expected return, because investment returns can fall.

Recommend the Best Fit and Record the Limits

Recommend People First Bank Basic Variable for the stated all-variable owner-occupier scenario because its displayed rate and eligible ongoing fees produce the lowest cost among these three. Qantas Money fits better when genuine offset on an eligible fixed portion or six linked accounts decides the need.

IMB Essentials fits a borrower who wants its variable offset and online redraw arrangements, provided the individual quote and banking costs justify them. Reprice any investment-loan scenario separately. An owner-occupier rate doesn’t establish the best investment loan.

The same comparison applies to a loan recommended through an Aussie broker or another brokerage. Record the lender’s actual product and quote, including offset eligibility. A broker’s name doesn’t change which loan portion the account offsets.

Keep a recommendation record with these details.

• The client’s purpose, loan amount and repayment type, plus fixed and variable portions.
• The expected daily offset balance, how long it lasts and required transaction access.
• The product page and fee schedule, with the date checked and any announced change.
• The quoted interest rate, comparison-rate assumptions and setup or switching costs.
• The account-link limit and any transaction-account charge that affects the requested arrangement.
• A specific lender question where the requested structure needs approval, followed by the lender’s written answer.

For example, the remaining question on a People First Bank proposal requiring several linked accounts is the approved account count for that structure. It doesn’t affect this one-account illustration. Resolve that requirement before recommending the multi-account arrangement.

Bulma’s Policy Advisor helps a broker compare lender eligibility rules and retain the quoted policy in file notes. Bulma doesn’t quote interest rates, fees or product pricing. Combine the policy evidence with the lender’s actual quote and the client’s balance pattern before deciding which offset home loan fits.