Banking major announces new offset policy
NAB has revealed that offset balances at the banking major have increased by 65% since the pandemic, with total balances reaching $48 billion.
Around 70% of new homeowners are now choosing to offset their loans, up from just 50% in 2022, said the Big Four bank.
Offset accounts are a useful tool for first-home buyers, as they can reduce the interest-bearing balance on a home loan. An offset balance of $50,000, for instance, could reduce a home loan balance from $400,000 to $350,000, depending on the lender’s terms, conditions and fees.
To support their growing popularity, NAB is now letting customers link up to 10 offset accounts to their mortgages.
This new policy was introduced in response to broker and customer feedback, said NAB’s executive of broker distribution Adam Brown (pictured).
“Multiple offsets support the popular ‘bucketing’ strategy that many customers use to manage their savings and ease cost of living pressures,” said Brown.
“Customers who like to distribute funds across several accounts will no longer need to make a sacrifice between bucketing their savings and having it all in one account doing the heavy lifting on interest. They’re perfect for customers who are looking to make every dollar count.”
Multiple offset accounts will allow homeowners to allocate funds for different goals while still capturing their interest benefits.
Brown recommended approaching a broker for advice on establishing one or more offset accounts.
“Brokers are always there to guide customers to get great outcomes when it comes to home lending. Having multiple offset accounts provides more options for customers to manage their money and benefit from their saving habits,” he said.
