A mortgage offset account is a transaction account linked to your variable rate home loan. Instead of earning interest on your savings, the balance in your offset account is subtracted from your home loan balance when the bank calculates your interest. This means you only pay interest on the net amount (the difference between your loan balance and the offset balance), which can potentially help you reduce your interest costs and pay off your mortgage sooner.
NAB offers a multiple offset feature, allowing you to link up to 10 eligible transaction accounts to a single variable rate home loan. Managing these links is done directly through the NAB mobile app or Internet Banking, giving you the flexibility to bucket your money for different financial goals—such as bills, emergency savings, or holiday funds—while still having those balances work to reduce your loan interest.
| Category | Details |
|---|---|
| Methods | NAB Mobile App, NAB Internet Banking |
| Processing Time | Linked in real-time via the NAB app |
| Eligibility | Eligible variable rate home loan customers |
| Key Requirements | Eligible transaction account (e.g., NAB Classic Banking) |
How to Set Up a NAB Offset Account
To link an offset account to your NAB home loan, follow these steps:
- Log in to the NAB app.
- Select your home loan account.
- Tap on the Manage button, then tap Manage offset accounts.
- Review the offset account benefits and trade-offs, then tap Manage offset account(s).
- Select or deselect eligible offset accounts and tap Review changes.
- Review the changes and important information, and tap Agree and submit changes.
- Your changes will be confirmed.
To view your linked offset accounts and interest saved, scroll down to the Linked offset accounts section in your home loan account screen.
Opening a New Account to Use as an Offset Account
If you don't have an eligible transaction account to link as an offset account, you can open one using the NAB app. Once your account is set up and ready, you can link it to your home loan using the steps above.
Note: Any person named on an offset account must also be named as a borrower on the eligible home loan.
Troubleshooting Common Access Issues
1. MFA / Login Issues
- Cause: You cannot log in to your banking portal to link an account because the multi-factor authentication (MFA) SMS is not arriving.
- Simple Fix: Wait two minutes for network delays before requesting a new code. Ensure your mobile signal is active.
- Fallback Action: Contact NAB customer support to verify your registered mobile number and resolve authentication delays.
2. Browser or App Errors
- Cause: The 'Manage' button for your loan is not appearing or the screen fails to load, often due to an outdated app version.
- Simple Fix: Ensure your NAB app is updated to the latest version in the app store; old versions may lack support for newer features like multiple offsets.
- Fallback Action: If the app continues to fail, try accessing the service via a desktop web browser (Internet Banking) or visit a branch for assistance.
3. Locked Account / ID / Access Issues
- Cause: Your digital access is blocked due to incorrect login attempts, preventing you from modifying your offset settings.
- Simple Fix: Use the self-service 'Forgot Password' or 'Reset Access' link on the login screen to regain account entry.
- Fallback Action: Visit a local NAB branch with physical photo ID to have a banker assist in unlocking your digital profile.
Pro-Tip: Coordinate your salary payments to go directly into one of your offset accounts. Since interest is calculated daily, having your salary sit in your offset account for even a few days before you pay your bills will maximize the interest saved on your home loan compared to keeping that money in a standard transaction account.
Frequently Asked Questions
Q: Why is my linked account not offsetting my home loan interest?
This usually happens if your home loan is currently on a 'fixed rate' period. Offset arrangements are generally only available on variable rate home loans. If you have recently switched from fixed to variable, there may be a slight processing delay before the offset function activates. Check your loan details in the app to confirm your current rate type; if it is variable and still not offsetting, contact NAB support to verify the account linkage.
Q: Can I link a joint account to my individual home loan?
Whether a joint account can be linked depends on the ownership structure of both the loan and the transaction account. Generally, for an account to function as an offset, the account holders must match the borrowers on the loan. If you are having trouble linking an account, check that all named account holders are also listed as borrowers on the home loan. Your next step should be to visit a branch or call support to discuss your specific account names and eligibility.
