Interest Offset

Own your home sooner with 100% interest offset

Mortgage Equaliser, our interest-offset facility, can make your savings work harder, by 'offsetting' them against your home loan. This will give you the flexibility of accessing your money if you need to, with the benefit of paying off your home loan sooner.

How interest offset works

Mortgage Equaliser is an interest offset feature available on our Standard Variable, Discount Variable and Low Doc home loans.

• Use Mortgage Equaliser to link a St.George savings or transaction account to your home loan as your offset account. If you wish, you can link up to 99 St.George offset accounts.
• To make your salary and savings work harder to pay off your home loan, move all your savings into your offset account and deposit salary and any other income directly into your offset account.
• Each day we offset the balance/s in your linked St.George savings account/s against the amount you owe on your home loan when calculating interest.
• Interest is calculated daily and charged monthly only on the net amount (your loan balance less your savings account balance for that day).
• Unlike a savings account that earns interest (which you must declare to the ATO and pay tax on), you earn no interest on the balance in your linked savings accounts. Instead mortgage offset reduces the amount of interest charged on your home loan balance.
• The result is you don't pay tax on interest you haven't earned and the interest payable on your home loan is reduced.

An example:

If your home loan balance is $350,000 on a particular day, and your linked savings account balance is $50,000 on that day, you only pay interest on $300,000 for the day. You will not earn interest on the $50,000 in your linked account. And because you make your standard repayments on your loan for $350,000, you will repay your home loan years earlier.

Interest Offset for investment loans 

Mortgage Equaliser is also available for investment loans with Interest Only repayments. You can choose standard mortgage offset, or take advantage of the 'repayment offset' option. It will reduce your monthly interest based repayment amount by the amount of the monthly 100% interest offset benefit, rather than reducing the loan principal.

Partial interest offset is also available for fixed rate home loans.

How to apply

When you apply for a home loan you can choose Interest Offset as a feature on eligible loans. 

If you're an existing home loan customer and you'd like to apply for Interest Offset, speak to one of our home loan experts on 13 33 30 or drop by a St.George branch.