Westpac lets home loan clients set-up offset accounts with no extra fees

Home loan customers can create up to 10 offset accounts.

Westpac is introducing an option for its home loan customers to set-up multiple offset accounts— up to 10— with no additional fees.

The new feature is available for lenders and brokers to request on behalf of eligible customers from 17 February 2025.

This comes as the Australian bank— one of its four largest in terms of assets— recorded a 37% increase in offset accounts opened over the past 5 years.

Westpac also reported a 63% increase in offset account balances over the same period.

“We’ve seen a steady increase in customers building up their offset balances. We will be rolling out the option for customers to set up to 10 offset accounts to offer greater flexibility in how they manage their savings, whilst reducing the interest charged on their home loan,” said Westpac Managing Director of Mortgages, Damien MacRae.

About 71% of Australians who have an offset account with a mortgage use it to reduce their home loan, Westpac found.

An offset account is an everyday bank account linked to your home loan, where every dollar in your account reduces, or offsets, the interest you pay.

“For example, with an offset account balance of $10,000 and a further $100 deposit added every month, a customer can save more than $110,000 in interest on a 30-year home loan of $500,000. This would also reduce the loan term by nearly three years,” according to Westpac.

Multiple offset accounts are already available to St.George, Bank of Melbourne and BankSA customers.

From March, customers with an eligible home loan will be able to manage their offset accounts online by searching ‘offsets’ in the Westpac app and selecting ‘manage offset accounts’.

Alternatively, Westpac customers will be able to visit any branch or call Westpac to set up their accounts.