Xavier is the proud owner and founder of Go Mortgage, an award-winning broker and office located in Arundel on the Gold Coast. Xavier has been working in the finance industry for over 21 years and holds a Diploma in Financial Services and a Degree in Financial Planning. Since 2006 Xavier has been committed to providing 5-star service and helping his clients realise their property dreams.
If the RBA reduces the cash rate, it could significantly impact your mortgage. Here’s what you need to know in our Q&A below:
1. Will Your Bank Automatically Adjust Your Loan?
No, banks typically do not automatically reduce your interest rate when interest rates drop. If you have a fixed-rate loan, your rate remains unchanged until the fixed term ends. If you have a variable-rate loan, your rate should decrease, but it’s not guaranteed – banks adjust rates at their discretion. To ensure you’re getting the best deal, it’s a good idea to review your loan regularly. You can call us at anytime to discuss your rate and discuss your options.
2. Timing Matters
Even if the RBA announces a rate cut in February, the effects won’t be immediate. Banks typically take a few weeks to adjust their rates, and this can vary across lenders. Staying informed and proactive is key to ensuring you benefit from any changes.
3. Will The Bank Notify You?
Most banks will communicate interest rate changes to their customers, but it’s always a good idea to stay vigilant. Don’t assume your lender has your best interests at heart; they might not pass on the full benefit of the cut.
How You Can Stay Ahead
You may receive a letter from your bank. If you would like advice on this reach out to your broker or call the Go Mortgage office on 1300 855 244
At Go Mortgage, we keep a close eye on interest rate movements to ensure our clients get the best possible deal. Here’s how we can help:
Mortgage Health Check
Let us review your current loan to see if you’re on the most competitive rate.
Refinancing Options
If your lender isn’t passing on rate cuts, we can help you explore alternatives.
Expert Guidance
We’ll explain how rate changes impact your repayments and guide you on the best steps forward.
What’s Next for Interest Rates?
Lenders and economists are divided on the timing of the RBA’s first rate cut. While some, like ANZ and CBA, predict cuts as early as February, others believe it could happen later in the year. Regardless, the consensus is that rates are set to ease in 2025, creating opportunities for borrowers.
However, a rate drop doesn’t automatically translate to easier homeownership. High serviceability requirements and elevated property prices remain challenges for many buyers. That’s why having the right mortgage strategy in place is more important than ever.
Take Control of Your Mortgage Today
With interest rate changes on the horizon, now is the perfect time to review your mortgage. Don’t wait for your bank to act – take charge of your financial future with Go Mortgage.
Ready to start saving? Book in with one of our specialised brokers today.
Maximise Savings and Manage Your Finances with Multiple Offset Accounts
Are you looking to save thousands on your home loan and take control of your financial goals? Offset accounts, and more specifically multiple offset accounts, could be the secret weapon you need. Let’s dive into what they are, how they work, and why they’re worth considering.
#offsetaccounts
What is an offset account?
An offset account is a linked savings or transaction account that reduces the interest charged on your home loan. The balance in this account offsets your mortgage principal, meaning you only pay interest on the difference.
Example: If you have a $700,000 mortgage and $30,000 in your offset account, interest is calculated on $670,000 instead of the full $700,000. This simple strategy can save you thousands in interest and shorten the life of your loan.
Why Consider Multiple Offset Accounts?
Many banks now offer the option to link multiple offset accounts to a single home loan, providing even more opportunities for savings and improved financial management.
1. Maximise Your Savings
Each offset account can serve a specific purpose, such as:
Savings for a family holiday
An emergency fund
An everyday spending account
All these balances collectively reduce the interest you pay, helping you save more and potentially pay off your loan faster.
2. Enhanced Financial Organisation
Multiple offset accounts allow you to compartmentalise your finances for better clarity and control. Whether you’re saving for short-term goals or managing household expenses, having separate accounts helps you stay organised without sacrificing interest savings.
3. Tailored Financial Strategies
With multiple offset accounts, you can build a strategy that aligns with your unique financial goals, ensuring every dollar works harder for you.
Which Banks Offer Multiple Offset Accounts?
Not all lenders provide multiple offset accounts, so it’s important to know your options. Here are some banks that do:
Macquarie Bank Suncorp Commonwealth Bank (CBA) Bank of Melbourne uBank Bankwest Beyond Bank ME Bank
Understanding the flexibility and features offered by different lenders is crucial when selecting a home loan.
Factors to Consider When Choosing a Lender
Research Interest Rates
Compare interest rates from various lenders. Even a small difference in rates can significantly impact your overall repayments.
Evaluate Loan Features
Look beyond the interest rates. Consider features such as offset accounts, redraw facilities, and flexible repayment options that could benefit your financial situation.
Read Customer Reviews
Check out reviews and testimonials from past clients. A lender with a strong reputation for customer service and reliability can make your mortgage experience smoother.
Understand Fees & Charges
Be aware of any upfront fees, ongoing charges, and penalties for early repayment. A lender with transparent fee structures can save you money in the long run.
Consider Customer Service
Evaluate how responsive and helpful a lender is during the initial inquiry process. Good customer service can make a significant difference throughout your mortgage journey.
Seek Professional Advice
Consult with a mortgage broker, like Go Mortgage, who can help you navigate different options and find a lender that suits your unique financial needs.
Check Lender’s Flexibility
Look for lenders that offer flexibility in terms of repayment schedules and the ability to make extra repayments without penalties.
Check Lender’s Flexibility
Look for lenders that offer flexibility in terms of repayment schedules and the ability to make extra repayments without penalties.
Assess Turnaround Times
Understand the lender’s process for approval and settlement times. A speedy process can be crucial if you’re looking to purchase a property quickly.
Look for lenders that make managing your offset accounts easy, with features like seamless transfers and linking various account types.
How Go Mortgage Can Help
At Go Mortgage, we understand that every homeowner’s situation is unique. Our experienced brokers will:
Explain the benefits of offset accounts tailored to your needs
Compare lenders to find the best options for you
Provide guidance on structuring your loan for maximum savings
Whether you’re a first-time buyer, investor, or looking to refinance, we’ll help you make informed decisions and achieve your financial goals.
Take Control of Your Mortgage Today
Multiple offset accounts are a game-changer for anyone looking to optimize their financial position and reduce home loan costs. By partnering with Go Mortgage, you’ll gain access to expert advice and tailored solutions to make your money work harder.
Ready to start saving? Book in with a specialised broker today
How to Protect Your Home from Wild Weather in Australia: Fire, Flood, and Storm
Australia is no stranger to wild weather. From devastating bushfires to intense floods and destructive storms, the varying climates across the country can pose significant challenges for homeowners. Protecting your property as much as possible is essential to ensure safety, minimise damage, and maintain the value of your home. Whether it’s DIY tasks or larger renovations, there are steps you can take to safeguard your home from nature’s extremes.
#beprepared
Bushfire Protection: Prepare for Fire Season
Fire season in Australia can vary depending on where you live. Northern Australia sees the peak bushfire period when it is dry, generally through winter and spring. In southern areas of Australia, the bushfire season peaks in summer and autumn. Local conditions can always drive bushfires outside the traditional peaks.
If you are living in bushfire-prone areas, preparation is key to protecting your home and your loved ones.
Key Steps to Safeguard Your Home from Fires
Create a Defensible Space:
Keep the area around your home clear of dry leaves, branches, and other flammable debris. Maintain at least a 20-metre buffer zone if possible.
Fire-Resistant Landscaping:
Use fire-resistant plants like succulents, lavender, or bottlebrush in your garden. Avoid planting eucalyptus trees or dry shrubs close to the house.
Upgrade Your Materials:
Install fire-resistant roofing, external walls, and windows. Products such as metal roofing, brick exteriors, and tempered glass are more resistant to flames.
Gutter Maintenance:
Clear gutters and downpipes regularly to prevent the build-up of dry leaves and debris that can ignite.
Install Ember Guards:
Fine mesh screens on windows, doors, and vents can prevent embers from entering your home.
Water Supply:
Install water tanks or fire hoses, and ensure you have a backup water supply to help combat small fires if needed.
Flood Protection: Minimise Damage from Rising Waters
Australia’s peak flood season is October to April when we are exposed to the most severe weather.
Floods can strike with little warning, especially in areas prone to heavy rainfall or near rivers and coastlines. While it can be difficult to completely flood-proof a home, you can take steps to reduce the risk of major damage.
Steps to Protect Your Home from Flooding
Elevate Key Areas:
Raise electrical outlets, switches, appliances, and other critical equipment above potential flood levels.
Waterproofing Renovations:
Apply sealants and waterproof coatings to external walls, floors, and basements to reduce water penetration.
Install Flood Barriers:
Use sandbags, flood shields, or temporary barriers to divert water away from the property during severe weather.
Maintain Drainage:
Ensure your gutters, downpipes, and stormwater drains are clear and functioning properly. Poor drainage can worsen flooding issues.
Landscaping for Drainage:
Use permeable surfaces like gravel or pavers in outdoor areas to help water drain away rather than pooling near your home.
Check Insurance:
Ensure your home and contents insurance policy includes flood cover to protect your assets in case of unexpected flooding.
Storm Protection: Safeguard Your Home from Strong Winds and Hail
Australia’s storm season, typically from November – April, can bring heavy rains, strong winds, and hail, often causing structural damage and water intrusion.
Key Steps to Prepare Your Home for Storms:
Roof Maintenance:
Inspect your roof for loose tiles, shingles, or damaged sheets. Repair any vulnerabilities to prevent leaks and damage during storms.
Trim Trees and Branches:
Overhanging branches can become projectiles during strong winds. Regularly prune trees near your home to prevent them from falling on structures.
Secure Outdoor Items:
Secure loose outdoor furniture, trampolines, and garden tools. Store lightweight items in a shed or garage when storms are forecast.
Storm Shutters:
Install storm-resistant shutters or use plywood panels to protect windows from hail or flying debris.
Check for Gaps:
Seal any cracks in windows, doors, or walls to prevent water intrusion and drafts.
Reinforce Your Garage Door:
Garage doors are often a weak point during storms. Reinforce them to withstand strong winds and prevent structural collapse.
Install a Sump Pump:
In areas prone to heavy rains, a sump pump in basements or low-lying areas can help remove excess water and prevent flooding.
General DIY Projects to Protect Your Home
Not all protective measures require large-scale renovations. There are several DIY tasks you can tackle to improve your home’s resilience.
Regularly clean and maintain gutters and downpipes to ensure proper water flow.
Check and replace weather seals around doors and windows to keep rain and wind out.
Store important documents, electronics, and valuables in waterproof and fireproof containers.
Create a family emergency plan and assemble an emergency kit with essentials like torches, batteries, first aid supplies, and food.
Invest in Resilient Home Improvements
For long-term protection, investing in renovations and upgrades can pay off significantly. Consider:
Fire-Resistant Cladding:
Upgrade your home’s exterior with fire-resistant materials such as metal, brick, or concrete.
Storm-Resistant Roofing:
Install roofing materials designed to withstand high winds and hail damage.
Flood-Resistant Flooring:
Replace carpets with tiles, vinyl, or polished concrete in flood-prone areas.
Backup Power:
Install a generator or solar battery system to ensure power during outages caused by storms or fires.
Stay Informed and Insured
Finally, staying informed and prepared can help you respond quickly during wild weather events.
Weather Alerts
Sign up for local emergency weather alerts and warnings.
Review Insurance Policies
Regularly review your home insurance coverage to ensure you’re protected against bushfires, floods, and storms.
Know Your Area
Understand the specific weather risks in your region, whether that’s fire danger zones, flood plains, or storm-prone regions.
Australia’s wild weather can be unpredictable, but protecting your home doesn’t have to be. By combining proactive maintenance, smart upgrades, and careful planning, you can safeguard your property and provide peace of mind for you and your family. Whether you’re tackling small DIY tasks or investing in significant improvements, every step you take strengthens your home’s resilience.
Stay safe, stay prepared, and enjoy your home no matter what Mother Nature brings your way.
As a mortgage broker, one of the key discussions we often have with clients is whether building a new home or buying an existing property is the better financial decision. While both options have their merits, there are several financial advantages to building a new home that you might want to consider before making your final choice. Let’s break down the key points from a home loan and financial perspective to help guide your decision.
1. Loan Flexibility: Construction Loans vs Traditional Home Loans
One of the primary differences when financing a new home build compared to buying an existing home is the type of loan you’ll need. Building a new home typically involves a construction loan, which oAers more flexibility during the building process.
A construction loan is released in stages, with funds drawn down as the build progresses. You pay interest only on the amount that’s been drawn down at each stage (for example, when the foundation is poured or when the roof is installed), which can help keep your interest payments lower during the construction phase. On the other hand, when buying an existing home, you must start making full mortgage payments immediately.
Key Financial Consideration:
A staged construction loan can reduce financial pressure during the build, allowing you to manage your cash flow more eAectively.
2. Lower Maintenance and Renovation Costs
Existing homes, especially older properties, often come with hidden maintenance costs. These can include outdated electrical, plumbing issues, or roof repairs, which may not be apparent during the initial inspection. Many buyers find themselves needing to spend tens of thousands of dollars on renovations soon after purchasing an existing home.
In contrast, when you build a new home, everything is brand new, and you benefit from modern construction standards. This significantly reduces the likelihood of unexpected repair costs. Plus, new homes usually come with warranties on the structure, fixtures, and appliances, giving you peace of mind and saving you money in the long term.
Key Financial Consideration:
Avoiding high maintenance and renovation costs in the early years after purchasing can save you upwards of $50,000 to $100,000, making a new build more cost-effective over time.
3. First Homeowner Grant and Other Incentives
For first-home buyers, building a new home can unlock significant financial incentives that aren’t available when buying an existing property. In many Australian states, including Queensland, the government oAers a First Homeowner Grant (FHOG) for those building or buying a brand-new home. This grant can be worth up to $30,000 depending on your location and the value of the property.
Additionally, there are stamp duty exemptions or reductions for first-home buyers purchasing new builds, which can save you thousands of dollars in upfront costs.
Key Financial Consideration:
Taking advantage of the First Homeowner Grant and stamp duty exemptions for new builds can reduce your initial out-of-pocket expenses, helping you get into the market sooner.
4. Customisation and Long-Term Value
Building a home gives you the ability to customise every aspect of the property, from the layout to the finishes, ensuring it meets your exact needs. This not only enhances your personal enjoyment of the home but also adds long-term value. Custom-built homes are generally more appealing to future buyers because they tend to incorporate modern features and designs that are in demand.
If you were to buy an existing home and renovate it to your preferences, you might have to take out a renovation loan or dip into your savings, which could significantly add to your overall cost. In contrast, including these customisations in the building process allows you to finance everything upfront as part of your construction loan, spreading the cost over the life of your mortgage.
Key Financial Consideration:
Customising your home during the build allows you to add value from the outset, and these costs can be financed as part of your construction loan, making it more manageable in the long term.
5. Energy Efficiency and Lower Utility Bills
New homes are built to meet modern energy efficiency standards, which can lead to significant savings on your utility bills. Features like high-performance insulation, double-glazed windows, and energy-efficient appliances are often included in new builds, and you can also choose to install solar panels or other green technologies during construction.
An energy-efficient home can reduce your electricity and heating costs by 30-50% compared to older homes. Over the course of 10 years, this could save you thousands of dollars which you could funnel into your home loan and increase the equity on your property.
Key Financial Consideration:
Lower ongoing utility bills can lead to long-term savings, improving your overall financial health and making a new build more economical than maintaining an older, less efficient home.
6. Knock Down and Rebuild Options
If you love your current neighbourhood but your existing home no longer meets your needs, a knockdown and rebuild project may be a smart financial move. This allows you to stay in your desired location while creating a modern, energy-efficient home that fits your lifestyle.
Financing a knockdown and rebuild can also be more cost-effective than buying a new home in the same area, especially in high-demand markets where established homes come at a premium. A construction loan can be used to finance the rebuild, and you can potentially save on costs like capital gains tax (CGT) if it remains your primary residence.
Key Financial Consideration:
A knockdown and rebuild can increase the value of your property while saving you from paying the premium for an established home in your preferred location.
7. Investment
Building new as an investment opportunity can oAer substantial tax benefits, such as depreciation deductions on the building and its fixtures, which can reduce your taxable income. Additionally, a new property can be a fantastic way to generate an extra income stream. If it is designed with the rental market in mind – think large families needing multiple bedrooms, open living spaces, and modern amenities.
Key Financial Consideration:
A new investment build can attract long-term, quality tenants, ensuring your rental income is steady.
Building a New Home Can Offer Long-Term Financial Benefits
From more flexible financing options to government incentives and long-term savings on maintenance and energy costs, building a new home can be a financially smarter decision compared to buying an existing property. Whether you’re a first-home buyer looking to take advantage of grants, or a family looking to future-proof your living space, the benefits of building new often outweigh the immediate convenience of purchasing an existing home. This can translate into savings on interest rates, the ability to improve your savings, increase your equity, and potentially more.
At Go Mortgage, we’re committed to helping you find the best financing solution for your new home. We’ll guide you through the construction loan process, ensuring that you’re fully informed and in control of your financial decisions every step of the way.
How Go Mortgage Can Help
At Go Mortgage, we specialise in tailoring mortgage solutions to meet your needs. Here’s how we can assist: Expert Advice: Our experienced brokers will explain the ins and outs of offset accounts and help you decide if they’re right for you. Personalised Solutions: We’ll match you with lenders offering the best offset account options based on your financial goals. Ongoing Support: From setup to management, we’re here to ensure you maximise your savings and stay on track.
An offset account is an everyday transaction account linked to your home loan, and every dollar in it is subtracted from your loan balance before the bank calculates interest each day. You pay interest only on the difference, so your savings cut your interest bill while staying available whenever you need them.
Say you owe $400,000 and keep $50,000 in your offset. The bank charges interest on $350,000, not $400,000. At 6%, that’s $3,000 a year less interest, and you haven’t lost access to a cent of your $50,000.
Key Takeaways
Your offset balance is deducted from your loan balance before daily interest is calculated. Your repayment usually stays the same, so the savings go towards principal and the loan finishes sooner.
On a $500,000 loan at 6% over 30 years, maintaining an average offset of $30,000 could save about $129,000 in interest and shorten the term to about 26.5 years.
The interest you save isn’t taxed. Interest on a savings account is.
Most offsets come with a package fee, so your average balance needs to be big enough to cover it.
An offset only works if it’s set up and linked to the right loan. ASIC’s 2026 review found some banks got this wrong.
Interest on most home loans is calculated daily. With an offset, the bank takes your loan balance, subtracts whatever’s sitting in the offset at the end of the day, and charges interest on the remainder.
Your repayment usually doesn’t drop. You still pay the same amount each month, but because less of it goes on interest, more of it goes on principal. That’s how the loan finishes sooner.
What is a mortgage offset account?
It’s a transaction or savings account with the same lender as your loan. You can have your pay deposited into it, pay bills from it and use a debit card on it, just like any other account. The only difference is that the balance works against your loan.
How does a mortgage offset account work with fixed rates?
Offsets are most common on variable rate loans. Some lenders offer them on fixed loans, but often with a cap on how much can be offset. We explain the trade-offs in our guide to fixed vs variable home loan rates.
Offset Account Meaning: 100% vs Partial Offset
The offset account meaning changes depending on the version you have.
100% offset: every dollar in the account reduces the balance you’re charged interest on. Most offsets you’ll see are this type.
Partial offset: only a percentage of the balance counts. With a 50% offset, $20,000 in the account reduces your loan by $10,000 for interest purposes.
Check which one you have before you rely on it. Your loan documents will say.
How Much Could You Save? A Worked Example
Here’s the offset account explained in numbers. This is a $500,000 loan at 6% over 30 years, with repayments of about $2,998 a month and the offset balance kept steady throughout.
Average offset balance
Total interest
Interest saved
Loan paid off in
None
about $579,000
–
30 years
$10,000
about $532,000
about $47,600
about 28 years 9 months
$30,000
about $450,000
about $129,000
about 26.5 years
The effect scales with the balance. Three times the offset saves a bit under three times the interest, because the time saved compounds. These figures are estimates. They assume a constant 6% rate and a constant balance, and real loans don’t behave that neatly.
Enough to cover the cost of having it. The break-even is simple: divide the extra annual fee by your interest rate.
Say the offset package costs $300 a year more than the same loan without one. At 6%, you need an average balance of $5,000 to break even (300 ÷ 0.06). Everything above that is a genuine saving.
If your average balance is only $3,000, the offset saves you about $180 a year. That’s $120 less than the fee. You’d be better off with a simpler loan.
So how does an offset account work if your balance bounces around? The bank uses the end-of-day balance, so use your average across the month, not the day your pay lands. If your balance is high for two days and near zero for the rest, the daily calculation will reflect that.
Is an Offset Account Worth It?
What is an offset account actually worth to you? Often, a lot. But not for everyone.
Why are offset accounts good?
They save interest at your loan rate. Every dollar in offset earns a return equal to your mortgage rate, with no tax on it.
You keep access. It’s your money in a normal account, not locked inside the loan.
They suit people who’ll keep savings anyway. An emergency fund, a tax bill, a deposit for the next property or a renovation budget can all sit there working.
They can help if you may rent the property out later. More on that in the redraw section.
Who an offset isn’t worth it for
Borrowers whose average balance sits below the break-even above.
People who spend their full pay every month and rarely hold a buffer.
Borrowers who’d pay a noticeably higher rate or fee for the offset than for a basic loan. Compare the total cost, not just the headline rate.
If that last point sounds like you, it’s worth asking a broker to run both options side by side. That goes for investors too: the maths only works if the balance is there.
Offset vs Savings Account: Which Is Better?
How does an offset account work against a savings account? If you have a mortgage, an offset usually beats it, mainly because of tax.
The interest on a savings account is assessable income, taxed at your marginal rate. The interest you save through an offset isn’t, because the ATO treats it as a reduction in your loan interest rather than interest you’ve received.
Take $30,000 in a 6% loan. The offset saves $1,800 a year, tax-free. For someone on the 37% marginal tax rate, a savings account would need to pay about 9.5% before tax to match it (6 ÷ 0.63, before the Medicare levy). No mainstream savings account does.
There’s one exception. If you want money you won’t touch for years, a higher-yield option might suit, but it’s a different goal.
Offset vs Redraw
Both reduce your interest, but they work differently.
Offset: a separate account. Your loan balance doesn’t change, and the money is always yours to move.
Redraw: extra repayments you’ve made into the loan. You can usually pull them back out, but access is at the lender’s discretion. A lender can limit or turn off redraw, and some charge for withdrawals.
There’s an investment angle too. If you may rent out your home later, an offset keeps your loan balance intact. Redrawing from a loan for personal spending can muddy how much of the debt is for investment purposes, and that affects what interest you can claim.
ATO guidance says any deduction can’t exceed the interest you actually incur after the offset is applied. Talk to your accountant before you structure anything, and see our page on property investment loans.
How to Make the Most of Your Offset Account
Have your salary paid into the offset.
Use it as your everyday account, so your balance stays high for as many days as possible.
Park lump sums like tax refunds and bonuses there.
Use a credit card for spending only if you clear it in full every month.
An offset only saves you interest if it’s linked to your loan.
ASIC reviewed eight banks, which together hold more than 70% of Australia’s $2.5 trillion home loan market. It analysed data on 204,000 loans. Banks reported paying over $55 million in compensation for offset failures between 01/09/2023 and 31/08/2025. And of the failures banks identified, 55% were offsets opened but never linked to the loan, 22% were never opened at all, and 14% were linked later than promised.
Here’s how to check yours:
Log in to your banking app or online banking. Confirm the offset exists, is linked to the right loan, and that the bank shows the interest benefit.
Do a rough daily check. On a $400,000 loan with $50,000 in offset at 6%, daily interest should be about $57.53 (350,000 × 6% ÷ 365), not $65.75. If your interest sits near the full-balance figure, ask your lender why.
Ask for confirmation in writing. Request the linked loan number and the date the link started.
Recheck after any change to the loan. ASIC says refinancing or switching loan products may mean you need to ask the bank to relink the offset. The same goes for splitting a loan, so confirm the offset is attached to the split you want it on.
For more on how offsets work, ASIC points borrowers to Moneysmart.
Common Mistakes
Paying a package fee you don’t earn back. Run the break-even first.
Assuming every offset is 100%. Some are partial.
Confusing an offset with redraw. They’re not the same, and a lender can turn off redraw.
Overlooking caps on fixed loans. The offset benefit may be limited.
Assuming it’s linked. Check, and check again after refinancing or switching.
Getting the Right Loan Structure
The cheapest advertised rate isn’t always the cheapest loan. A good structure matches how you actually use your money: how much you hold, whether you might rent out the property, and whether a fee is worth paying.
We compare offset loans across our lender panel and run the break-even for your numbers, so you know the offset pays for itself. If you already have an offset, we can review whether it’s linked and whether you’re on the right loan. You can also see how refinancing to a loan with an offset could work for you.
Still asking how does an offset account work for your own loan, or whether it’s worth it? Call the Go Mortgage team on 1300 855 244 and we’ll run the numbers with you.
Some lenders offer offset accounts with no extra fee. Others charge an annual package fee, or price the loan slightly higher. Compare the total cost, not just whether there’s a fee.
Do offset accounts work on investment and SMSF loans?
Yes. Offsets are available on owner-occupier and investment loans, and on many SMSF loans. Not every lender offers them, and basic loan products often can’t have one.
Can I use an offset account to save for a future purchase?
Yes. Money saved for a deposit, renovation or car can sit in the offset and reduce your interest while you save. You can still access it when you’re ready.
Does every home loan come with an offset account?
No. Basic or low-fee loans often don’t. If you’re weighing up what is an offset account worth to you, check it’s included before you apply.
How many offset accounts can you have?
It depends on the lender. Some allow one, and some allow several linked to a single loan, up to 10 with certain lenders. Our post on using multiple offset accounts explains when it’s worth it.
What does it mean to offset a bank account?
It means linking a transaction account to your home loan so its balance is subtracted from what you owe when interest is calculated. You still own and can spend the money. That’s the offset account meaning in plain terms: it reduces the interest you’re charged without locking your cash away.
This article is general information only and doesn’t consider your personal circumstances. Speak to a mortgage broker and a tax adviser before making decisions.
Your Guide to Saving a 20% Home Deposit and Getting into Your First Home Sooner with Go Mortgage.
Buying your first home is an exciting journey, however, saving for deposit – especially a full 20% – can feel like a daunting mountain to climb. While it may take some time and disciplined planning, a 20% deposit can bring you valuable benefits: avoiding Lender’s Mortgage Insurance (LMI), reducing your loan amount, and even potentially securing better terms from lenders.
However, reaching that 20% goal doesn’t mean you need to put your life on hold. Here’s a fresh approach to help you tackle this milestone, stay motivated, and move into your new home sooner.
1. Get Clear on your Goal and Savings Target
Define Your Budget
Start by researching home prices in the area and property type you’re interested in. Knowing that number makes it easier to calculate your deposit goal. For example, a 20% deposit on a $500,000 property means you’ll need $100,000 saved up. This target gives you a concrete number to work toward.
Remember the Extras
It’s easy to focus solely on the deposit, but first-time buyers often face additional expenses such as stamp duty, legal fees, home insurance, and moving costs. These extras might add another 5-8% of the property price, so factor these in for a more complete financial picture.
2. Separate and Protect Your Deposit Savings
Once you’ve set your savings goal, open a dedicated account just for your deposit. This keeps it separate from your daily spending and helps minimise the temptation to dip into it for other needs. Look for accounts offering high interest or other incentives that can help your savings grow over time.
3. Budget for Success: Every Dollar Counts
A well-thought-out budget can be the backbone of your savings plan. Here’s a practical way to get started:
Track Your Spending: Look over your last few months’ bank statements and categorise your expenses – essentials (rent, utilities), discretionary (eating out, hobbies), and savings.
Set Monthly Savings Milestones: Divide your target amount by the months you have until you aim to buy. This way, you’ll know exactly how much to save each month. For example, if you plan to save $100,000 over four years, set a monthly savings goal of $2,083.
Automate Your Savings: Set up an automatic transfer from your main account to your deposit account right after you get paid. Automating savings turns it into a habit and ensures you stay on track.
4. Prioritise Debt Reduction
If you’re carrying debt, especially high-interest debt like credit cards, focus on paying it down first. High-interest debt eats into your budget and can prolong your savings timeline. By reducing or eliminating these debts, you free up more income each month to contribute toward your deposit.
5. Cut Back on Spending Without Sacrificing Enjoyment
Small lifestyle changes can add up quickly when you’re saving for a big goal like a deposit. Here are a few easy-to-implement ideas that don’t feel like sacrifices:
Cook More at Home: Dining out is often one of the biggest discretionary expenses. Cooking at home not only saves money but lets you explore new recipes and enjoy healthier meals.
Look for Free Entertainment: Instead of spending on movies, concerts, or other outings, try local hikes, community events, or hosting game nights with friends.
Revisit Subscriptions: Cancel or pause subscriptions you don’t use regularly. You might be surprised how many streaming or subscription services are collecting fees without much value to you.
6. Add to Your Savings with a Side Income
If you can, consider picking up a side gig. Even a modest extra income, like $200 a month, can have a big impact over time. Whether it’s freelance work, part-time tutoring, or driving for a rideshare service, a side income dedicated solely to your deposit fund accelerates your timeline without compromising your primary income.
7. Check for First-Home Buyer Programs and Grants
Governments often provide programs and incentives to make buying a first home more affordable. If you’re eligible, these can be invaluable in helping you reach your deposit sooner:
While a 20% deposit is ideal, there are other paths if that target feels too far out of reach. Some banks and lenders offer options to buy with a smaller deposit, and while there are trade-offs, they can get you into a home sooner:
Lender’s Mortgage Insurance (LMI): Some lenders will approve loans with as little as 5-10% down, but LMI will add to your overall costs. However, the benefit is entering the property market sooner and potentially capitalising on future property appreciation.
Guarantor Loans: Some first-time buyers use a family member as a guarantor to help secure a loan without LMI and with a smaller deposit. This can be a great way to buy a home sooner if a family member is willing and financially able to assist.
9. Regularly Review and Adjust Your Progress
Life and finances are always changing, so make it a habit to check in on your savings plan every few months. Adjust for any changes in income or expenses and see if there are new areas where you could cut back or opportunities to save more. These regular check-ins keep you focused and motivated as you watch your savings grow.
Final Thoughts: Every Small Step Brings You Closer
Saving a 20% deposit can be challenging, but by following a structured plan, you’re setting yourself up for success. Remember, even small efforts add up over time, and each step brings you closer to opening the door to your very own home. Think of these saving habits as long-term skills that will continue to benefit you as a homeowner.
Ready to start your journey toward homeownership? It’s time to take that first step, begin saving, and watch your dream of owning a home become a reality.
By following these strategies, you’ll be well on your way to saving that deposit and stepping into your first home sooner. Happy saving!
If you want to talk to us about the health of your credit file and your loan options, simply click to get in touch or call 1300 855 244.
As a homeowner, understanding home equity is essential for maximising your financial opportunities. Home equity is the portion of your property you truly own, and it’s a powerful tool that can help you achieve your financial goals.
In this guide, we’ll explain what home equity is, how to build it, and how you can use it. Plus, we’ll cover the latest trends in home equity in Australia for 2026.
Key Takeaways
Home equity is the difference between what your home is worth and what you still owe on your mortgage.
Your equity can grow as you pay down your loan or as your property increases in value.
You may be able to access some of that equity for things like renovations, another property or debt consolidation.
Accessing equity means taking on more debt, so it’s important to understand the repayments and risks before you use it.
What is Home Equity?
Home equity is the difference between the current value of your home and what you still owe on your mortgage. As an example, if your home is worth $600,000 and you owe $400,000, your equity is $200,000. Over time, your home equity can grow as you pay down your mortgage or as your property value increases.
Building and using home equity effectively can give you financial flexibility, whether you are looking to renovate, invest, or consolidate debt.
How to Build Home Equity
Building home equity usually happens in two ways: you reduce the amount you owe on your mortgage, or your property increases in value. Often, it is a combination of both.
While equity generally builds over time, there are a few practical ways you may be able to speed up the process, from making extra repayments to improving the value of your home.
Pay Down Your Mortgage Faster
Making extra payments toward your mortgage principal will build equity faster.
Make A Larger Deposit Payment
Making extra payments toward your mortgage principal will build equity faster.
Home Improvements
Renovations that increase your home’s value, such as a kitchen makeover, adding a pool or intalling energy-efficient features, can boost equity.
Property Value Appreciation
In a strong housing market, your home’s value may increase naturally over time, growing your equity.
How to Access Home Equity
Having equity in your home does not mean you can simply withdraw it like money from a bank account. To access home equity, you usually need to borrow against the value of your property.
Common ways to do this include:
Refinancing your home loan and increasing the amount you borrow
Adding a separate loan split to your existing mortgage
Using a line of credit, where available
Taking out a second mortgage in some circumstances
How much you can access will depend on your property value, how much you still owe and the lender’s requirements. Lenders will also look at whether you can afford the higher repayments.
For many borrowers, the first step is determining their usable equity, which is the portion a lender can actually let them borrow against.
How to Use Home Equity
Once you know how much equity you may be able to access, the next question is what to do with it.
Homeowners commonly use equity to fund renovations, help purchase another property, consolidate debt or support other financial goals. Because accessing equity increases your debt, it is important to weigh the benefit against the extra repayments and interest.
Home Equity Loan
Borrow a lump sum at a fixed rate using your home as collateral. It’s ideal for large expenses, such as renovations or debt consolidation.
Cash-Out Refinance
Replace your existing mortgage with a new one andat a higher loan amount to and withdraw the difference as cash. This option is great for consolidating high-interest debts or investing in other opportunities.
What Can You Use Home Equity For?
Leveraging home equity can open up various opportunities.
Home Renovations
Use home equity to finance renovations that increase your home’s value or improve your quality of life. Renovations are a common one, using equity to fund work that lifts your home’s value and liveability; see using equity to renovate. Others use equity to buy your next home, funding the deposit on an upgrade or a downsize.
Debt Consolidation
Consolidate high-interest debts like credit cards or personal loans into a lower-interest home equity loan or HELOC. You can also consolidate debt using home equity, rolling credit cards, personal loans and car finance into your mortgage at a lower rate, though you will pay more interest over the longer term.
Investment
Some homeowners use their home equity to invest in real estate, start a business, or diversify their financial portfolios. Many investors use equity for investment property as a deposit rather than drawing down cash savings.
Emergency Fund
In times of financial uncertainty, home equity can serve as a safety net for unexpected expenses – a financial buffer.
Family Guarantee
Parents increasingly use equity as a family guarantee to help their kids buy without a full deposit. Some homeowners also draw on equity for shares or business investment, though that needs careful structuring, so talk to your accountant first.
Risks of Using Home Equity in 2026
Accessing equity is not free money, and it is worth going in with eyes open. It increases your total debt and your repayments. If property values fall, you could end up owing more than the home is worth, and while the Gold Coast market has grown strongly, cycles do exist.
Borrowing the maximum amount available for a speculative investment can leave you exposed if the returns do not materialise. Pushing your LVR back toward 80% or higher also leaves less buffer to absorb any downturn, and every dollar you access attracts interest for the remaining life of the loan. A broker can model the full cost of accessing your equity before you commit, so that the decision is informed.
Gold Coast Home Equity: What Local Homeowners Should Know
Home equity Australia-wide has grown strongly over the past few years, and the Gold Coast is no exception. Home values here are up double digits over the past year alone, with many suburbs posting far larger five-year gains.
A property bought for $650,000 five years ago may now be worth $950,000 or more, creating well over $300,000 in equity even with only modest mortgage repayment. Growth has been notable across pockets such as Arundel, Coomera, Southport, Helensvale, Runaway Bay and Robina. If you have not had your property valued in the last two to three years, the equity available to you may be more than you think.
Get a Free Equity Assessment
Go Mortgage can arrange a property valuation, work out your usable equity, and then compare it across our panel of 60+ lenders to find the right rate and structure for accessing it. It is a free, no-obligation conversation, and we have spent 21+ years helping Gold Coast homeowners do exactly this.
Call 1300 855 244 to book a free assessment.
Frequently Asked Questions
The difference between your property’s current market value and what you still owe on your mortgage. On an $800,000 home with a $450,000 mortgage, your equity is $350,000.
Usable equity is typically 80% of your property’s current value, minus your outstanding mortgage balance. On an $800,000 property with a $450,000 mortgage: ($800,000 x 80%) – $450,000 = $190,000.
The most common way is to refinance your mortgage for a higher amount. You can also add a loan split, set up a line of credit, or, if you are 60 or over, consider a reverse mortgage.
Yes. Many investors use equity in their existing home as the deposit, and a broker can structure the loan to keep the investment portion separate for tax purposes.
It can, though not every renovation adds dollar-for-dollar value. Kitchens, bathrooms and outdoor living areas tend to return the most, while cosmetic updates offer the best cost-to-value ratio.
Total equity is the full gap between property value and mortgage balance. Usable equity is what a lender will actually let you access, generally capped at 80% of value minus your loan.
It builds through paying down your mortgage principal and through property value growth. Extra repayments, an offset account and fortnightly payments can all speed it up.
The Importance of Pre-Planning Before Getting Your Mortgage Loan: And How Go Mortgage Can Help
When it comes to getting a mortgage, preparation is everything. At Go Mortgage, we can’t stress enough how essential pre-planning is for a smooth home-buying experience. In our latest YouTube short, we touch on a key point: the earlier you start planning, the fewer surprises you’ll encounter along the way. By working with a broker from the outset, you’ll know exactly where you stand and avoid frustrating delays later on.
Get Clarity Early On 🔎
One of the biggest benefits of pre-planning is identifying potential challenges upfront. As we mentioned in the video, it’s better to know now if there’s something that might delay your application, like issues with your credit or a savings shortfall. If there’s something you need to address, we can help you plan for it – whether it’s waiting a few months or making financial adjustments. We will have this conversation with you and make the necessary contingencies, if any.
The last thing you want is to come back later only to find out you need even more time. Pre-planning ensures that when the time is right, you’re ready to move forward without unexpected setbacks.
Pre-Approval Gives You an Advantage 👌🏻
A pre-approval isn’t just a piece of paper – it’s your roadmap. It gives you a realistic idea of how much you can borrow, when you’ll be ready to buy, and what steps you need to take along the way.
Knowing your borrowing capacity: Pre-approval shows what’s possible within your budget.
Timing matters: Understanding when you can buy helps you avoid disappointment and makes house hunting more focused.
Avoid Delays: Any issues identified during the pre-approval process can be handled early, reducing stress when it’s time to apply for your mortgage.
Organise Your Finances and Documents 📑
Pre-planning also means having your financial documents in order to avoid delays later.
Lenders need to see:
Income verification (payslips, tax returns) Bank statements and summaries of any loans Credit card and debt information At Go Mortgage, we help you get these documents organised ahead of time, maintaining data integrity, so there are no last-minute surprises.
Choose the Right Loan for You
Pre-planning allows you to explore different loan options and find the best fit for your financial situation. Do you want the stability of a fixed-rate loan or the flexibility of a variable rate? Are you interested in features like offset accounts or redraw facilities?
Our team at Go Mortgage guides you through the options to ensure the loan you choose aligns with your long-term goals.
Avoid Last Minute Financial Changes
It’s important to avoid taking on new debt or making large purchases between pre-approval and settlement. Even a seemingly minor change could affect your credit score/profile and disrupt your loan approval. Pre-planning gives you the foresight to avoid these pitfalls and keep the process on track.
Work with Experts from the Start
Engaging with a mortgage broker early in the process can make all the difference. As we said in the video, the pre-planning process isn’t just valuable – it’s a necessity. The work done during pre-approval gives you clarity on what you need to do, when you can act, and how to prepare.
At Go Mortgage, we guide you every step of the way so that you’re never left wondering what’s next. The sooner we identify any issues or opportunities, the sooner you’ll be ready to move forward with confidence.
Final Thoughts: Plan Early. Avoid Stress
Pre-planning your mortgage journey helps you avoid delays, tackle challenges head-on, and ensure you’re ready to secure your dream home when the time is right. At Go Mortgage, we believe that starting early means fewer surprises and more control over your future.
Be sure to watch our YouTube short for more tips and insights. If you’re ready to begin your journey, reach out to the team at Go Mortgage today – because the right home starts with the right preparation.
Let Go Mortgage guide you through every step of the pre-planning process, ensuring you’re always one step ahead on your path to homeownership.
If you want to talk to us about the health of your credit file and your loan options, simply click to get in touch or call 1300 855 244.
Welcome to Selling Season: How to Stand Out and Secure Your Dream Home with Help from Go Mortgage.
We are now in Spring and as the days grow warmer and spring turns into summer, the property market kicks into high gear. Known as the ‘selling season’, this time of year typically sees a surge in homes hitting the market as sellers take advantage of the good weather and increased buyer interest. For many, it’s the perfect time to find that dream home, but with more competition also comes more pressure to act quickly and decisively.
If you’re planning to buy a home, it’s important to be prepared. In this article, we’ll explore how you can stand out from the competition and secure your dream property, and how working with a mortgage broker can give you a significant edge.
Why the Warmer Months Are Selling Season ☀️🏡
The warmer months are the peak season for homebuyers for a few reasons:
Weather Conditions: The pleasant weather makes it easier for potential buyers to visit open homes and attend auctions.
End-of-Year Deadlines: Many buyers and sellers are keen to finalise purchases before the end of the year, especially if they want to move in before the holidays or start fresh in the new year.
Spring Cleaning: Spring is a time when sellers prepare their homes for sale, taking advantage of natural light and blooming gardens to make their properties look their best.
With more properties on the market and more buyers eager to purchase, competition can be fierce. That’s why it’s crucial to be prepared so you can move quickly when the right opportunity arises.
Get Pre-Approved and Be Ready to Move ✅
One of the best ways to make sure you’re ready to act when you find your ideal home is to secure pre-approval for your mortgage. Pre-approval is when a lender evaluates your financial situation and confirms how much you can borrow before you start house-hunting. This is where Go Mortgage can step in to help streamline the process for you and provide you with the advantage over other buyers who may be competing for the same property as you are.
The Benefits of Pre-Approval:
Confidence in Your Budget: Knowing exactly how much you can borrow gives you a clear idea of what properties are within your budget, so you won’t waste time looking at homes that are out of your reach.
Stronger Position at Auctions: Auctions can be intense, and having pre-approval in hand gives you the confidence to bid knowing your financing is already sorted.
Speed in Making Offers: In a competitive market, you need to be able to move quickly. Sellers are more likely to consider offers from buyers who have pre-approval because it signals you’re serious and ready to proceed with the sale.
Avoid Last-Minute Surprises: Pre-approval helps you understand any issues with your financial situation early on, so you’re not caught off guard by problems when it’s time to apply for the loan.
How Go Mortgage Can Help with Pre-Approval
At Go Mortgage, we specialise in helping buyers like you get pre-approval so that you can secure your dream home without unnecessary delays. We work closely with over 60 lenders to find the best options for your financial situation. Here’s how we can help:
Assess Your Financial Situation: We take the time to understand your income, expenses, and financial goals to determine how much you can comfortably borrow.
Compare Lenders: With access to a wide range of lenders, we can shop around on your behalf, comparing rates, terms and conditions, to find the best loan for your unique situation.
Navigate the Paperwork: The pre-approval process involves a lot of documentation, and it can be overwhelming. We handle the paperwork, making the process as smooth and stress-free as possible.
Stay Up to Date: If your financial situation or the market changes, we can help adjust your pre-approval, so you stay ready to make your move when the right property becomes available.
More Ways a Broker Can Help You Stand Out
Beyond pre-approval, a mortgage broker can assist you in a variety of other ways during selling season:
Tailored Advice for Auctions: If you’re buying at auction, the process can be different than a standard purchase. We can guide you through the rules and requirements, ensuring you’re well-prepared to bid with confidence.
Specialised Loan Options: Not all loans are created equal. Whether you’re looking for a low-deposit option, a first-home buyer grant, or something more tailored like a construction loan, we can help you find a loan that suits your unique needs.
Refinancing to Boost Your Borrowing Power: If you already own a property, refinancing could unlock additional equity, allowing you to borrow more and secure the next home without overstretching your finances. Take a look at our borrowing power calculator for more help.
Ongoing Support After the Purchase: Our job doesn’t end once you’ve secured your loan. We continue to provide support, ensuring you’re always in the best position to manage your mortgage and advising on any future refinancing opportunities. You are part of the Go Mortgage family. Book in with a specialised broker at a time suitable for you.
Make Your Move this Selling Season
With more properties hitting the market and competition heating up, the time to act is now. By working with a mortgage broker and getting pre-approved, you will put yourself in the best position to secure your dream home, whether it’s at auction or through a private sale.
At Go Mortgage, we’re here to guide you every step of the way – from the pre-approval process to finding the right loan for your situation. Get in touch with us today and let’s get you ready to make your move this selling season!
If you want to talk to us about the health of your credit file and your loan options, simply click to get in touch or call 1300 855 244.
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