100% Offset - If you like the idea of a Line of Credit, but not the security then this may be the loan for you. Very similar to the standard variable loan where repayments are principle and interest reducing the loan over time. Income is paid in to an account that offsets 100% against your mortgage thus saving on interest and meaning the loan is paid off quicker. In other words if your mortgage is $150,000 and you have $15,000 in your savings account then you only pay interest on $135,000. A genuine way of saving money, without paying tax on the interest. The ideal loan for the budget conscious with funds left over at the end of the month or savings to leave sitting for any given time. The only pitfall is interest is usually higher than the basic loan but lower than the line of credit. The benefits are great! The loan reduces quicker as repayments are calculated on total loan amount over a set period but with the extra money in the savings account more interest is saved meaning loan is paid off quicker. By placing salary into this loan you dramatically reduce the interest. Money is easy to access from offset account via ATM or cheque.