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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.<\/p>\n
Sick of being told to cut back, thousands of Aussies have swung towards a dead simple banking trick that\u2019s saving $74,000 on the average mortgage.<\/p>\n
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 \u2013 with younger homeowners under 35 doubling their use of the tool in the past year.<\/p>\n
MORE: Shock as rents fall in almost 1 in 10 suburbs<\/a><\/p>\n Zero reno, $700k profit in a year: Homeowner\u2019s massive windfall<\/a><\/p>\n NAB home lending executive Denton Pugh.<\/p>\n 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.<\/p>\n 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 \u2013 both at 77 per cent \u2013 while Victoria sat at 68 per cent.<\/p>\n Gen X still leads the charge as the biggest users of offset accounts \u2013 but the fastest growing segment was NAB customers under 35, up 98 per cent in just one year.<\/p>\n NAB home lending executive Denton Pugh said as interest rates fluctuated homeowners were increasingly focused on long-term stability and control.<\/p>\n \u201cWhen interest rates are changing, it\u2019s completely normal for people to feel uncertain about what it means for their mortgage. And we get it \u2013 people are tired of being told to cut back. That\u2019s why tools like offset accounts matter. They help reduce interest costs without needing big lifestyle changes.\u201d<\/p>\n MORE: \u2018Breach\u2019: Aussie told to rip up brand new floor<\/a><\/p>\n \u2018Political suicide\u2019: Investor\u2019s brutal call on tax reform<\/a><\/p>\n First-home buyers Sarah-Jayne Phillips and Zac Pecorini are among younger Aussie homeowners taking a more strategic approach to managing their money.<\/p>\n Mr Pugh said for those who like to \u201cbucket\u201d their finances, multiple offset accounts could help people stay organised while maximising their savings.<\/p>\n \u201cEvery dollar in your offset account is working for you, cutting interest and helping you pay down your home loan faster,\u201d he said.<\/p>\n First-home buyers Sarah-Jayne Phillips and Zac Pecorini are among younger Australians turning to offsets to manage their money \u2013 after recently welcoming their first child.<\/p>\n \u201cWe moved into our first home late last year,\u201d said Ms Phillips. \u201cOpening an offset account means our money is working to reduce the interest paid on our loan, without locking it away.\u201d<\/p>\n For 35-year-old Melbourne-based mum Annabel, it was a low-effort way to organise finances.<\/p>\n \u201cWe set up our multiple offset accounts last year and it\u2019s helped us be more organised,\u201d she said. \u201cIt\u2019s also reassuring knowing our money is working harder for us by reducing our mortgage at the same time.\u201d<\/p>\n MORE: Up 17 per cent: First warning as prices to explode<\/a><\/p>\n<\/p>\n
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