How to use our offset calculator
Using our mortgage offset sub-account calculator is simple. You’ll need to input figures including:
- Your loan amount
- Interest rate
- The term of your loan
- Repayment frequency such as whether it’s monthly or fortnightly
- Your starting account balance
- Net monthly contribution.
What do I need to enter into the offset sub-account calculator?
The results will show your regular monthly repayments, the total mortgage amount, the interest paid, and the interest you can save.
This calculator comes in handy if you’re hoping to determine whether or not an offset sub-account is the right choice for you given your financial situation. If you don’t already have one, you can use it to see the difference when you decide to add this feature to your regular home loan.
If you don't plan on making regular payments into your offset sub-account but have a good idea of what you believe will be the average amount you will keep in it, simply put this amount in the starting balance and leave the net monthly deposit as $0.
Why use an offset sub-account calculator?
It can be tricky sometimes to understand exactly how an offset sub-account works, as well as how much you could potentially save. Our calculator helps borrowers see the benefits in a quick and simple way. In particular, borrowers can:
- See how much sooner you can pay off your mortgage
- Work out how much interest you can save on your home loan.
FAQs
What is an offset sub-account?
An offset sub-account is a sub-account which is linked to your home loan where you can put money (e.g. from savings or your pay) and rather than earn credit interest on that money, you use the money to reduce the interest payable on your home loan.
You are able to redraw your money anytime you want, using your Visa debit card attached to the account.
How does an offset work?
The amount in your offset sub-account is offset against your loan balance and interest is only charged on the difference.
For example, if your loan amount is $350,000 and you have $50,000 in your offset, then you will only be charged interest on $300,000. Because you pay less in interest, an offset can help you pay off your mortgage sooner while still having the ability to access the money you have in your account.
Is an offset worth it?
An offset can be a great way to save on interest on your home loan. But it's still important to weigh up your individual circumstances to determine if it is right for you.
To get the greatest benefits of an offset sub-account, the amount of money held must be consistently at a reasonable level.
To maximise the amount that is held in your offset sub-account, many people deposit all their salary into it. They can then spend the money using a linked Visa debit card, just as they would with a transaction account.
How do you maximise your offset?
1. Pay your salary directly into your offset sub-account
Every dollar in your the account saves you money every day on interest. So to boost your savings, have your salary paid directly into your into your account.
2. Throw in any savings
If you're saving for a holiday, new car or even school fees, you can use those savings to help pay off your home loan faster. Deposit them in your account until you need the money so you will pay less interest.
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Being an online lender with fewer overheads means we’re able to pass on the savings to our customers.
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Get help when you need it from our friendly team of Australian based, lending specialists.
Flexible options
Looking to save with an offset, or make extra repayments with a redraw? We have a full range of loan features to suit your situation.
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We’re efficient. For the last 10 years, we’ve won awards each year for our innovation, low rate home loans and car loans and extras like our offset sub-account from experts like RateCity, Canstar and WeMoney to name a few.
Ready to get started?
Whether you’re ready to buy your first property and start repaying your home loan or you’ve owned your property for a while and want to add an offset sub-account to your loan to pay it off sooner and save in interest, we have the tools and tips to help.
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