Mortgage payments are roughly four years ahead of schedule for homeowners.

Homeowners in Australia are piling up their offset accounts at a historic pace, with the average household already over four years ahead of their mortgage payments.

Do you have a mortgage that has an offset account (or several) tied to it?

They’ve been increasingly popular in recent years, particularly as the official cash rate of the Reserve Bank of Australia (RBA) has fallen to record lows, affecting the amount of interest you can earn in savings accounts (which we’ll go into more detail about later).

But first, how much have the balances of offsets risen?

The average sum in offset accounts is now nearly $100,000, up to about $20,000 since the outbreak began in March 2020, according to research provided to The Australian by the Australian Prudential Regulation Authority (APRA).

As of September 2021, there was a total of $222 billion in offset accounts across the country, up over $50 billion from March 2020s $174 billion.

Offset account balances climbed by 10% in the September 2021 quarter alone.

After all of this, mortgage borrowers are now 45 months ahead of their payments on average, up from 32 months before the pandemic.

57 percent of prepayments came from offset accounts, 40 percent from accessible redraw balances, and 3 percent from other extra repayments, according to the numerous methods Australians have gotten ahead.

How do you define an "offset" account in the first place?

An offset account is essentially a typical transaction account that is tied to your mortgage.

Because you only pay interest on the difference between what you have in your account and what you owe on your mortgage, this is a plus.

You can also have ten offset accounts tied to your mortgage, each with a card that you can use for regular spending.

Does an offset account appeal to you?

There are, of course, other aspects to consider, such as account maintenance fees and the minimum balance required to make the account effective.

Savings accounts and offset accounts, of course, aren’t the only places where you can stash your hard-earned cash. Other solutions that may give a larger return, depending on your risk level, are available to you.

If you think an offset account would be right for you, get in touch with us and we’ll help you figure out what’s available to you in the long run.

To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at

Disclaimer: The content of this article is general and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your situation and may not be relevant to circumstances. Before taking any action, consider your particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent.

Contact Us

Schedule your free 15-min call with an advisor

Let us know how we can help below.