Let’s talk offsets. Not the “offset your morning coffee and muffin with a salad at lunch” kind – I mean your mortgage offset account.
ASIC has recently started poking around in the $307 billion offset market (yep, billion with a “B”), and they’ve found that in some cases, lenders aren’t actually passing on the full savings to their customers. In other words, some offsets aren’t doing the heavy lifting they’re supposed to.
Your offset account should be saving you interest every single day by reducing the loan balance your bank charges you on. If it’s not set up or linked properly, you might be missing out on money that should be staying in your pocket.
In the last few years we have been checking these are set up correctly after you settle or refinance but sometimes things change and you don’t realise that you’re not getting offset all of a sudden.
Pro tip: Have a quick look at your loan statement. Does the offset balance look like it’s reducing your interest charges? If you’re not sure, give your lender a buzz and ask the question. And if that sounds like too much of a hassle, reach out to us – we’re more than happy to help you check if your offset is pulling its weight.
Big News for First-Home Buyers
Now, if you or someone you love is a first-home buyer, there’s some pretty exciting news (and a couple of warnings too).
The government has brought forward the new 5% deposit scheme, kicking off on October 1, 2025. Here’s the lowdown:
🏠You can now buy a home with just a 5% deposit (no Lender’s Mortgage Insurance – that’s a huge saving).
🏡The old income and cap limits? Gone.
🏘️Price caps have been lifted – in Sydney, you can now buy up to $1.5 million and still qualify. Melbourne’s at $950K, Brisbane’s $1 million.
That means more people can get into the market sooner. Sounds great, right? Well, yes… but there’s a flip side. Experts are predicting it could drive prices up by 3–9% in the first year. So while the deposit hurdle gets easier, competition might heat up too.
It’s not all doom and gloom though. This scheme could be the perfect springboard if you’re ready to jump in, and having the right strategy in place makes all the difference.
Don’t Forget Your Grants
On top of the federal schemes, there are still plenty of state-based first-home owner grants and stamp duty concessions out there:
💰NSW: $10K for new homes, plus stamp duty discounts up to $1 mil.
💰VIC: $10K grant on new builds, stamp duty relief up to $750K.
💰QLD: A generous $30K grant for new builds, plus stamp duty breaks.
💰SA, WA, TAS, NT, ACT all have their own offers too – from grants to duty concessions.
It’s worth checking what’s on offer in your state – because every dollar counts when you’re pulling together that deposit.
Wrapping It Up
So here’s the takeaway:
✅ Check your offset account is working properly (don’t let the bank pocket your savings).
✅ If you’re a first-home buyer or know one, get across the new 5% deposit scheme starting October.
✅ Don’t forget the extra sweeteners from your state government.
And remember – you don’t have to navigate all of this alone. Whether it’s offsets, deposits, or figuring out which grant you can actually get your hands on, we’re here to help.
Your money should be working just as hard as you do – so let’s make sure it is.
Talk soon,
Greg Hearn
The Financial Physicist
