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Pairing fixed rates and offset accounts

Fixed rate home loans that come with offset accounts are like unicorns. You’ve heard of them but you’re pretty sure they don’t exist. Well, guess what? They do at Tiimely Own (the loan, not the unicorns).

May 09, 2023

Man standing in kitchen, smiling at his phone

Can you link an offset account to a fixed loan?

With a Tiimely Own home loan, you can.

Read our guide to find out how and why a fixed rate loan with an added offset account could be the budgeting powerhouse of your dreams.

Fixed rates

A fixed rate home loan is where the interest rate is locked in (‘fixed’) for a set period of time, usually between 1-5 years.

Great for those who want stable repayments

This means your repayments will be the same, giving you more certainty and stability in your budgeting, which is one of the upsides of going fixed. In a rate hike environment, having a fixed rate means you don’t need to worry about your repayments changing.

The downsides to fixed rates include:

  • If interest rates start to decrease you don’t receive the benefits of those movements
  • The break cost if you need to end your fixed rate period earlier than expected (they’re very expensive)
  • Most lenders limit the amount of additional repayments you can make. And there is usually an annual cap so you don’t benefit as much for paying down more of your principal loan amount. These additional, voluntary amounts are usually accessible through a redraw facility
  • Typically not available with offset accounts – but keep reading.

The Tiimely Own difference

With Tiimely Own, you can combine the certainty of a fixed rate with the saving power of an offset account. That’s right. Fixed rate home loan + offset account = Getting the best of both worlds with a Tiimely Own home loan.

How? Let's break it down.

What is an offset account?

An offset account is a transaction or savings account that is linked to your home loan. Just like other savings accounts, you can choose to have your salary deposited into it and set up direct debits. You can also have a debit card connected to it for everyday purchases. However, where it differs from other transaction/savings accounts is how it is connected to your home loan.

At the end of each day, the balance of your offset account is taken away from the amount you owe on your home loan, and the interest for your home loan is then calculated on the difference between them (i.e. on your loan amount, minus the savings you have in your offset account).

This means if you have money stashed in your offset account, you will pay less interest over the life of the loan and can pay back your home loan faster. This is a handy way to reduce the amount that your home loan interest is calculated on without having to make extra repayments and needing to redraw them later. Offset accounts are different to redraw facilities because they are a separate account from your home loan, while a redraw facility allows you to withdraw any additional repayments you have made into you home loan.

Full or partial offset – what's the difference?

Depending on your lender, you can get access to a partial or a full (100%) offset account. A full (100%) offset account means that the full amount in your offset account is deducted from your principal amount, whilst a partial offset means only a proportion of the amount in your account is offset against your loan balance.

With a Tiimely Own home loan, you can access a 100% offset account for only $10 a month. Want to deep dive into offset accounts? You can do that here.

Find out more about Tiimely Own’s fixed rate home loans, which all have the option to add an offset account.


By Bridget

Home Loan Specialist


Legal information about our rates
Our home loans are subject to credit criteria and eligibility requirements. Home loan interest rates are for new customers only and can change. Our comparison rates are based on a $150,000 loan amount over a 25 year term. They factor in fees associated with applying for the loan; ongoing fees and fees associated with leaving the loan. Our fixed loans roll to a variable principal and interest rate at the end of the fixed term. If the interest only period is not specified, the comparison rate is calculated on a one year period.

WARNING: The comparison rates are 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.

Tiimely Turnaround
^Our turnaround times are up to 2x faster than the industry, based on a comparison of our average platform submit to approval time compared to industry submit to approval time, published here  (June 2023). Customer turnaround times are dependent on individual circumstances and may require an assessor to obtain more information.

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