Instead of letting your salary sit idle in a savings account, depositing it into your home loan (even temporarily) saves more interest than a savings account earns.

A Radical Idea That's Actually Common Sense

Most Australians get paid into a transaction account earning 0% interest. From there, they drip-feed money out for groceries, bills, and life. Meanwhile, their home loan balance sits at full strength, racking up maximum daily interest.

What if your pay went straight into your home loan instead? Every dollar temporarily reduces your loan balance, even if it's just for a few days. You save interest immediately.

How It Works

Jim gets paid $5,000. He gets his employer to deposit it straight into his home loan. His balance drops from $500,000 to $495,000. Daily interest is now calculated on $495,000.

Over the next 2–3 weeks, Jim draws funds back out to cover expenses. Even if he only leaves the money in for a few days, he's still ahead. Every day his balance is lower than normal equals interest saved.

The Comparison

Bazza parks his $5,000 pay in a savings account paying 4% interest. Over a month, he earns about $11.67 after tax.

Jim parks his $5,000 in his home loan at 6%. He saves about $25 in interest that month. And the $25 Jim saves isn't taxed.

What You Need for This to Work

This strategy works best with:

A loan that allows free, unlimited redraws — or an offset account
Fast access to your money (preferably instant)
The discipline to not panic when your transaction account says $0

An offset account is the ideal tool here. Your pay goes in, you spend from it normally, and every dollar sitting there is reducing your home loan interest in the background. No redraw fees, no waiting, no hassle.