One simple trick saving Aussie homeowners $74k

There has been a 98 per cent surge in young Aussie homeowners tweaking their home loans to save thousands over the life of their mortgage.

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Sick of being told to cut back, thousands of Aussies have swung towards a dead simple banking trick that’s saving $74,000 on the average mortgage.

New data from National Australia Bank shows nearly three-quarters of its home-loan customers are seeing significant potential savings after locking in offset accounts – with younger homeowners under 35 doubling their use of the tool in the past year.

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NAB home lending executive Denton Pugh.

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NAB found that on a $500,000 loan at 5.42 per cent over 30 years, an offset account could cut around $74,000 off the total interest a homeowner paid over the life of the mortgage.

Around half of customers have up to $20,000 set aside in these offset accounts to do the heavy lifting, with New South Wales and Queensland uptake strong – both at 77 per cent – while Victoria sat at 68 per cent.

Gen X still leads the charge as the biggest users of offset accounts – but the fastest growing segment was NAB customers under 35, up 98 per cent in just one year.

NAB home lending executive Denton Pugh said as interest rates fluctuated homeowners were increasingly focused on long-term stability and control.

“When interest rates are changing, it’s completely normal for people to feel uncertain about what it means for their mortgage. And we get it – people are tired of being told to cut back. That’s why tools like offset accounts matter. They help reduce interest costs without needing big lifestyle changes.”

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First-home buyers Sarah-Jayne Phillips and Zac Pecorini are among younger Aussie homeowners taking a more strategic approach to managing their money.

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Mr Pugh said for those who like to “bucket” their finances, multiple offset accounts could help people stay organised while maximising their savings.

“Every dollar in your offset account is working for you, cutting interest and helping you pay down your home loan faster,” he said.

First-home buyers Sarah-Jayne Phillips and Zac Pecorini are among younger Australians turning to offsets to manage their money – after recently welcoming their first child.

“We moved into our first home late last year,” said Ms Phillips. “Opening an offset account means our money is working to reduce the interest paid on our loan, without locking it away.”

For 35-year-old Melbourne-based mum Annabel, it was a low-effort way to organise finances.

“We set up our multiple offset accounts last year and it’s helped us be more organised,” she said. “It’s also reassuring knowing our money is working harder for us by reducing our mortgage at the same time.”

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