Rocket Loan: Variable home loan with offset
Why choose our variable home loan with offset
Package & save
Package your loan for a special home loan rate discount, no credit card annual fee (for the life of your package), and around $9K saving‡, all for a $395 annual package fee#.
Save interest with up to 10 offsets
Every dollar in your linked offset account counts towards reducing the interest on your linked home loan.
Flexible features
Split your loan across variable and fixed rate, redraw anytime with no fees, and enjoy unlimited extra repayments on the variable portion.
Tailored discounted rates
Discounted variable rates tailored to your situation and needs. Discuss your rate with a dedicated lender.
More offsets, less home loan
Got a Rocket loan? Link up to 10 offset accounts.
- Every dollar in your linked offset reduces your home loan interest.
- Easier budgeting: distribute funds into buckets, like income and expenses.
- To link: sign in, select Manage offset accounts and follow prompts.
What is an offset account?
An offset account is a transaction account that’s linked to your home loan. You can deposit or withdraw from it as often as you like.
Every dollar in your account reduces, or offsets, the interest you pay on your home loan. At Westpac, you can link up to 10 offsets. For example:
$500K Home loan balance |
- | $90K ($50K offset #1, $40k offset #2) |
= | $410K Balance you pay interest on |
Featured rate
For a property to live in, with LVR up to 70%
5.89% p.a. |
6.27% p.a. |
|
|---|---|---|
Variable rate |
Comparison rate* |
Rate includes a 0.10% p.a. discount for LVR+ up to 70%. Available on new Owner Occupier packaged# home loan with Principal & Interest repayments. $150k min loan. $395 annual package fee and T&Cs apply.
Other rates and fees
| Total loan term | Up to 30 years | |
| Repayment | Weekly, fortnightly, monthly | |
| Repayment types | Principal and interest, Interest only. | |
| Extra repayments | Yes | |
| Split with a fixed interest rate loan | Yes | |
| Redraw extra repayments | Yes | |
| Offset accounts | Up to 10 per home loan | |
| Increase loan | Yes, (subject to formal approval. Read more about loan increases.) | |
| Parental Leave repayment reduction | Up to 50% for 12 months (T&Cs apply) |
Extra discount for new home loans
If you are taking out a new home loan, and borrowing up to 70% of the bank's valuation of the property, you could be eligible to get an extra 0.10% p.a. discount off the standard interest rate. This LVR+ discount is available to new lending only.
LVR stands for the initial loan to value ratio. LVR is the amount of your loan compared to the Bank’s valuation of your property offered to secure your loan expressed as a percentage.
A $395 annual package fee applies to loans on the Premier Advantage Package.#
For a new home loan, with LVR+ up to 70%.
View our Owner Occupier rates:
The below rates include our 0.10% p.a. discount for LVRs+ up to 70%:
| Annual rate | Comparison rate* | |
|---|---|---|
| With Premier Advantage Package# | 5.89% p.a. | 6.27% p.a. |
| Without Package | 8.23% p.a. | 8.36% p.a. |
The below rates include our 0.10% p.a. discount for LVRs+ up to 70%:
| Annual rate | Comparison rate* | |
|---|---|---|
| With Premier Advantage Package# | 6.48% p.a. | 6.49% p.a. |
| Without Package | 8.82% p.a. | 8.63% p.a. |
How do I get the best rate?
Book an appointment with a dedicated lender to discuss discounted variable rates tailored to your situation and needs.
Extra discount for new home loans
If you are taking out a new home loan, and borrowing up to 70% of the bank's valuation of the property, you could be eligible to get an extra 0.10% p.a. discount off the standard interest rate. This LVR+ discount is available to new lending only.
LVR stands for the initial loan to value ratio. LVR is the amount of your loan compared to the Bank’s valuation of your property offered to secure your loan expressed as a percentage.
A $395 annual package fee applies to loans on the Premier Advantage Package.#
For a new home loan, with LVR+ up to 70%.
View our investor rates:
The below rates include our 0.10% p.a. discount for LVRs+ up to 70%:
| Annual rate | Comparison rate* | |
|---|---|---|
| With Premier Advantage Package# | 6.09% p.a. | 6.46% p.a. |
| Without Package | 8.78% p.a. | 8.91% p.a. |
The below rates include our 0.10% p.a. discount for LVRs+ up to 70%:
| Annual rate | Comparison rate* | |
|---|---|---|
| With Premier Advantage Package# | 6.35% p.a. | 6.59% p.a. |
| Without Package | 9.04% p.a. | 9.09% p.a. |
| Fee type | Cost with Premier Advantage Package# | Cost without package |
|---|---|---|
| Lending establishment fee | $0 | $600 ($0 for investor loans on principal and interest repayments) |
| Loan account fee | $0 | $8 per month |
Premier Advantage Package: $395 annual package fee#
| Fees for Extras | Cost |
|---|---|
| Fixed rate - lock-in fee2 | 0.10% of the loan amount |
Save big when you bundle
- You could save around $9k in interest in the first year ‡
- Plus no set up or ongoing home loan fees
- Plus savings on a credit card and Home/Landlord Insurance
- All for a $395 annual package fee
#.
Based on a $400k packaged variable home loan. Eligibility criteria, T&Cs apply.
Applying is simple, get started online
1. Apply for your home loan now
Apply in around 10-20 mins, or save and come back later. Tell us about you and see how much you could borrow. And don't worry, we'll let you know before the credit check. Need help? You can live chat with us to help you complete the application.
2. Fast approval
You could get unconditional refinance approval the same day you apply. Or conditional approval within 1 business day to help you confidently bid or make an offer for up to 90 days.
3. Discuss your rate and features with a lender
A dedicated lender will be in touch to go over the finer points of your loan. You’ll have an opportunity to negotiate your rate, as there’s no obligation until you accept your rate and loan offer.
4. On to settlement
Your lender will finalise your loan through to settlement. Accept our loan offer, and that’s it.
Already started an application? Retrieve your application
Looking for something else?
Frequently asked questions
Principal & Interest. Your minimum monthly P&I repayments aren’t affected by your offset balance. Instead, all the funds in your offset account (or the combined balance if you have multiple) work to reduce your home loan interest, as you only pay interest on the difference between the loan amount and the amount in your offset account. And because your interest may be lower if you maintain your offset balance or grow it, you could pay off your home loan sooner.
Interest Only. If your interest rate doesn’t change and you have funds in your offset, your daily interest will reduce, and so will your monthly minimum IO repayments.
No. Westpac doesn’t offer this option. You can split your home loan though, so the variable part of it can have up to 10 linked offset accounts.
An offset is a transaction account that’s linked to a home loan, and a redraw is a home loan feature. They work in different ways, but both can help you save on interest and pay off your home loan sooner. It’s possible to have a both an offset account and a redraw facility.
An offset account is an everyday bank account that links to your home loan. You can link up to 10, and your combined offset account balances count towards lowering your home loan interest because you only pay interest on your loan balance minus your daily offset balance.
For example, if you have a $500k home loan and $50k total in your offset accounts, then you only pay interest on $450k.
No. An offset account is an everyday transaction account. Your funds in an offset account will not earn interest, but they will offset the interest on your home loan balance by exactly the same amount. Because home loan interest rates are usually higher than the savings account, funds kept in an offset account are still working hard for you.
Monthly Choice account fees are waived when linked as an offset.
There are no risks as such, but there are a few things to consider.
Offset accounts work best when your balance grows, so withdrawing from them frequently will reduce their effectiveness: the longer funds stay in your offset accounts, the more they can reduce interest payments on your home loan balance.
An offset account is a transaction account, and a home loan is a mortgage product. Offset accounts are linked to the home loan, and the funds kept in them offsets against the balance of the loan. Interest is charged on this reduced balance, rather than the full outstanding home loan balance.
Your minimum monthly repayments always come out of your nominated transaction account, whether that’s your offset or another account.
- You can make regular or one-off extra repayments from any transaction account.
- If you miss your minimum monthly repayment – and have enough available funds (extra repayments) in your loan’s redraw facility – we’ll automatically debit your redraw funds to meet your minimum monthly repayments.
If you’d like your minimum repayments to come from available funds in your redraw facility for a while, you can choose to stop the repayment monthly direct debit, or request a repayment pause.
A split home loan is when you separate your home loan balance into two different accounts, one with a variable interest rate and one with a fixed interest rate.
Splitting your loan balance with a variable and fixed home loan rate allows you to get the best of both worlds. With the fixed portion of your home loan, you can lock in your interest rate and be certain that your loan repayments won’t change for the duration of the fixed rate term.
The variable rate portion of your loan lets you take advantage of any interest rate decreases and get ahead with no limit on the amount of extra repayments you can make. Learn how it works.
Not quite ready to apply?
Things you should know
Conditions, credit criteria, fees and charges apply. Residential lending is not available for Non-Australian Resident borrowers.
This information is general in nature and has been prepared without taking your personal objectives, circumstances and needs into account. You should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.
The taxation position described is a general statement and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation.
‡Package Savings: This is an estimate of potential savings; actual savings may differ depending on your situation. Estimated savings amount calculated on a $400,000 home loan receiving 2.34% p.a. discount on a packaged Rocket Repay owner occupier variable rate home loan compared to an unpackaged Rocket Repay variable rate home loan. Premier Advantage Package Conditions of Use $395 annual package fee applies.
+LVR stands for the loan-to-value ratio. LVR is the amount of your loan compared to the Bank's valuation of your property offered to secure your loan expressed as a percentage. Home loan rates for new loans are set based on the initial LVR and won't change during the life of the loan as the LVR changes.
Premier Advantage Package: Conditions of Use and $395 annual package fee applies. You must either hold or be approved for a Westpac Choice transaction account in order to qualify and continue to receive the benefits of the Premier Advantage Package. Applicants must have a Westpac Choice transaction account linked to the home loan at the time of settlement and must keep this account open for 60 days after settlement. Before deciding to acquire a Westpac Choice account, read the terms and conditions, and consider whether the product is right for you. Tax consequences may arise from this promotion for investors and customers should seek independent advice on any taxation matters.
Premier Advantage Package Conditions of Use (PDF 295KB)
^^Rate Lock: We’ll apply the fixed rate available on the loan settlement date or the date your fixed rate term starts, unless you lock a fixed rate on your loan using our Rate Lock feature. The fixed rate lock-in fee is 0.10% of your loan amount. At the end of the fixed rate term, the interest rate will roll onto our standard variable home loan interest rate, unless a new fixed rate term’s selected and then the fixed rate is determined two business days before the end of the fixed term.
*Comparison rate: The comparison rate is based on a loan of $150,000 over the term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
*****Monthly $5 Westpac Choice account-keeping fee waived if you meet one of the following:
- You've linked it to your Rocket Repay Home Loan or Rocket Investment Loan as an offset account
- You deposit at least $2,000 each month
- You're under 30 years old, or a full-time tertiary student
- Westpac Choice Concession account holders
- You're new to Australia, or an expatriate customer (for the first 12 months).
‡Package Savings: This is an estimate of potential savings; actual savings may differ depending on your situation. Estimated savings amount calculated on a $400,000 home loan receiving 2.34% p.a. discount on a packaged Rocket Repay owner occupier variable rate home loan compared to an unpackaged Rocket Repay variable rate home loan. Premier Advantage Package Conditions of Use $395 annual package fee applies.
1Sustainable Upgrades home loan and Sustainable Upgrades investment loan comparison rate: The comparison rate is based on a loan of $30,000 over the term of 5 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.