Simple move saving Aussies thousands before rates lock in.

Insider figures show more Aussie home loan borrowers are turning to a simple strategy to save thousands as the Reserve Bank moves to lock in rates for summer.

National Australia Bank executive for home lending, Denton Pugh, reveals below how home loan borrowers are shifting their finances around to take advantage of tools available to them to cut costs.

By NAB Home Lending Executive Denton Pugh.

Offset accounts have long been valued for their ability to reduce the interest charged on a home loan. Every dollar in an offset account works to lower your interest bill and helps you pay off your loan faster.

That means you can pay off your mortgage faster and save big.

But it’s not just about saving on interest. Offset accounts offer flexibility – whether you’re planning for a family holiday, setting aside funds for school fees, or building an emergency buffer, being able to “bucket” your money for different goals can make managing finances simpler.

Some lenders even let you have multiple offset accounts linked to one loan, so you can “bucket” your money for different goals while still cutting interest.

We’ve seen a real shift in how customers use their offsets. By separating savings for different goals, people are finding it easier to stick to budgets and avoid dipping into funds set aside for important milestones. It’s a small change that can make a big difference over time.

And Australians are taking advantage. Borrowers tipped a record $14.1 billion in extra repayments into loans in the September quarter.

The Reserve Bank says households are also building buffers through offset and redraw accounts. More than 80% of NAB customers kept repayments steady after rate hikes, putting themselves in a strong position to pay down debt faster.

Of course, not everyone can make extra repayments. Cost-of-living pressures are real, and uncertainty about where rates go next is still hanging over households. But for those who can, using tools like offset accounts can make a big difference over time.

Why now? With rates on hold, homeowners have a window to take control and save more – while staying ready for whatever comes next. Optimising your offset strategy could mean thousands saved over the life of your loan.

As 2026 approaches, it’s a great time to review your home loan and offset setup. You might be surprised at the difference it can make.

– Denton Pugh is the National Australia Bank executive for home lending.

Source: realestate.com