A redraw offset facility can help you pay less interest on your home loan and in turn, pay it off faster.
This is because, instead of paying interest on your full loan amount, you’ll only have to pay interest on that part of it which is left after you subtract away what is in the redraw offset account.
Using the home loan offset calculator below is quick and easy.
You can use the offset mortgage calculator to:
See how much sooner you can pay off your loan
Work out how much interest you can save on your loan
Just enter your loan amount, interest rate, starting balance and the net monthly deposit or mortgage repayment you plan to make to your redraw offset facility, to find out how much you can save.
If you don't plan on making regular payments into the redraw offset 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.
Loading...
Loading Calculator
Interest saved
{{resultData.interestSaved | currency}}
Time saved
{{resultData.timeSaved_Year}} years, {{resultData.timeSaved_Month}} months
Revised loan term
{{resultData.revisedLoanTerm_Year}} years, {{resultData.revisedLoanTerm_Month}} months
Length of Month
All months are assumed to be of equal length. In reality, many home loans accrue on a daily
basis leading to a varying number of days' interest dependent on the number of days in
the particular month.
Number of Weeks & Fortnights in a Year
One year is assumed to contain exactly 52 weeks or 26 fortnights.
Repayment Amounts
Repayments are rounded to the nearest cent. Repayments are calculated assuming a principal
and interest repayment over the loan term. Weekly and fortnightly loan repayment amounts are
assumed to be a quarter and a half of the monthly repayment amount respectively.
Interest Rate, Offset Balance, and Net Offset Deposit
The interest rate, starting offset balance, and net offset deposit are considered to be the
same for the duration of the loan.
Offset Account
A facility whereby:
The facility operates in conjunction with a loan; Interest is calculated daily and applied
monthly in arrears; and The facility has the equivalent interest rate to that of the loan
and operates in such a way that the interest payable on the loan is reduced by the amount of
the interest that would have been earned on the facility.
Use of the Offset Account
The calculator compares a loan operating without an Offset Account against a loan linked
with an Offset Account.
Potential Interest Saved Calculated as to the sum of A = B less C, where:
A = Potential Interest Saved
B = Interest debited on loans where the loan stands alone.
C = Interest debited on loans where the loan has a linked Offset Account incorporating the
offset balance and net offset deposit input by the user.
General
Calculations are estimates and provided for illustrative purposes only. They do not take
into account any ongoing fees. The information produced by the calculator is not an
indication of nor is it intended to predict future interest rates, future income, or future
offset account balance. The calculator is not intended to be relied on for the purposes of
making a decision in relation to a financial product and that you should consider obtaining
advice from a financial services licensee before making any financial decisions. The
calculator utilises information supplied by the user and assumptions made by the calculator
to provide a guide only.