Trending
Prev Story
Next Story

Shares or offset? The three-zone rule that makes the choice simple

The Australian Financial Review (AFR) •
October 30, 2026 • 12:08 AM
1
1 reads 0 reactions

With home loan rates above 6 per cent, shares need to deliver almost 9 per cent before tax just to beat the guaranteed, tax-free return of an offset account.

Shares or offset? The three-zone rule that makes the choice simple

There are points in the interest rate cycle when it’s better to stash any spare cash in the offset account rather than investing it in the sharemarket – and we have crossed into that red zone.

When interest rates were low (2 to 3 per cent), investing easily made borrowers more than they paid in loan interest.

Gift articles to anyone you choose each month when you subscribe.

Prev Swipe Story Next

Related Stories

Business & Economy
Build #2612