100% offset versus all-in-one

Font size :

Q. What's the difference between 100% offset and all-in-one? Which type pays your loan off quicker?

Offset account loans are loans which have a linked savings (offset) account. 100% offset means that the nominal interest rate applicable to the savings account is the same as the interest rate applicable to your loan. So your savings account balance is working for you and gaining you maximum benefit. A further benefit is that as no interest is being earned on the savings account, no tax is payable. So after tax return is identical to your loan interest rate.

A. An all-in-one loan is essentially a transaction account and a home loan combined. It allows you to directly credit your salary or other income to the account and then withdraw your cash via ATM, EFTPOS, linked credit card or cheque book, as you need it. The major benefit of an all-in-one loan is that it enables you to decrease your interest charges by keeping your funds in the account for as long as possible. The interest rate on all-in-one loans may be slightly higher and you may also be charged a monthly access fee.

The most significant difference between the two types of loans is that available funds in the offset account are more readily accessible than the all-in-one loan account.

Related: Home Loan Calculator

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Wednesday, Sep 20, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords