Feature article
What is an offset mortgage & is it for you?
Everything you need to know about this handy mortgage feature.
26 November 2025
What is an offset mortgage?
Example: Kev’s offset loan
Is an offset mortgage a good idea?
The benefits of an offset mortgage
What is the downside of an offset account?
Which banks offer offset mortgages in NZ?
Offset mortgage vs revolving credit: what’s the difference?
| Offset mortgage | Revolving credit | ||||
|---|---|---|---|---|---|
| Account structure | Account structure | Loan is separate from linked everyday/savings accounts. | Loan is separate from linked everyday/savings accounts. | One big account that functions as your loan and everyday spending account (like a large overdraft). | One big account that functions as your loan and everyday spending account (like a large overdraft). |
| Savings access | Savings access | Easy access to linked savings; your withdrawals immediately increase the interest charged. | Easy access to linked savings; your withdrawals immediately increase the interest charged. | Your everyday balance reduces the interest. You can redraw funds up to your limit. | Your everyday balance reduces the interest. You can redraw funds up to your limit. |
| Discipline required | Discipline required | Moderate discipline. You still have structured principal repayments. | Moderate discipline. You still have structured principal repayments. | High discipline. Easy to overspend or not pay down the principal if not careful. | High discipline. Easy to overspend or not pay down the principal if not careful. |
| Best for | Best for | People with solid, consistent savings/emergency funds, or investors. | People with solid, consistent savings/emergency funds, or investors. | High-income earners with irregular cash flow who are highly disciplined. Often used to fund renovations. | High-income earners with irregular cash flow who are highly disciplined. Often used to fund renovations. |
Offset mortgage FAQs
Talk to a mortgage professional
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