Home loans • Offset strategy
What is in the Offset Account Playbook for 2026?
Offsets cut interest daily, but the structure matters more than the rate. This playbook shows how we stack offsets, automate savings, and decide when to refinance.
What are the key takeaways (TL;DR)?
- Offsets reduce interest daily while keeping cash liquid for future plans.
- A three-bucket setup (bills, goals, buffer) keeps savings organised and visible.
- Review your rate and structure yearly to see if a refinance is worth it.
Amelia Hart
Should you use an offset or redraw?
Offsets reduce interest without touching the loan balance, which keeps flexibility high. Redraw still works, but offsets win when you want liquidity or future tax advantages on an investment upgrade.
How does the three-bucket offset structure work?
We recommend a simple three-offset system that mirrors how people actually spend:
- Core bills. Mortgage, utilities, insurance, and fixed expenses.
- Goals. Renos, deposits, or lump-sum milestones.
- Buffer. A cash moat for irregular income or surprises.
This keeps every dollar working while still letting you see what is available at a glance.
How do you automate cash flow into offsets?
Set salary sweeps into the buffer, then schedule weekly transfers into bills and goals. Automation removes the temptation to spend what should be saving interest.
We also like round-up tools or percentage splits that grow as income grows, so the offset gets fatter without manual effort.
What is the offset account setup checklist?
- Open separate offsets for bills, goals, and buffer so every dollar has a job.
- Route income into the buffer offset first, then schedule weekly transfers.
- Set a buffer target that covers your irregular months and keep it untouched.
- Track offset balance growth monthly and run a rate review every 12 months.
When should you refinance an offset loan?
Offsets are only half the equation. Rate creep, new cashbacks, or LVR improvements can make refinancing worthwhile. We run a break-even check every 12 months to see if the math still stacks up.
What are the next steps?
Email your latest loan statement to info@newgenfinancebrokers.com or call 0451 414 800. We will map the offset structure, calculate interest savings, and build a refinance plan if there is a faster path.