Interest Saved: $
New Estimated Loan Term: years
Note: Results are estimates and may vary. Consult with a financial advisor for personalized advice.
Are you looking to save money on your mortgage and potentially pay it off years earlier? A mortgage offset calculator can help you understand the potential benefits of using an offset account with your home loan. Let’s explore how this powerful financial tool works and how it can benefit you.
New Estimated Loan Term: years
Note: Results are estimates and may vary. Consult with a financial advisor for personalized advice.
A mortgage offset account is a savings or transaction account linked to your home loan. The balance in this account is offset daily against your mortgage principal, effectively reducing the amount of interest you pay on your loan.
For example, if you have a $300,000 mortgage and $50,000 in your offset account, you’ll only pay interest on $250,000 of your loan balance.
Our mortgage offset calculator helps you determine:
To use the calculator, you’ll need to input:
By offsetting your savings against your mortgage, you can significantly reduce the interest charged on your loan.
Unlike making extra repayments directly to your mortgage, funds in an offset account remain accessible for other purposes.
Interest earned on savings accounts is typically taxable, but the interest you save through an offset account isn’t considered income.
By reducing the interest charged, more of your regular repayments go towards paying down the principal, potentially shortening your loan term.
Our mortgage offset calculator uses the following formula to determine your savings:
Interest Saved = (Loan Amount - Offset Balance) * (Interest Rate / 365) * Days in Year
This calculation is performed daily, as most lenders calculate interest daily and charge it monthly.
A: Some lenders allow multiple offset accounts linked to a single mortgage. Check with your specific lender for their policies.
A: It depends on your financial situation. An offset account offers more flexibility, but extra repayments can also be beneficial. Use our calculator to compare both scenarios.
A: Some lenders charge fees for offset accounts. Be sure to factor these into your calculations when determining potential savings.
A: This varies by lender. Some offer partial offset facilities for fixed-rate loans, while others only allow it for variable-rate mortgages.
A: While both can save you interest, an offset account typically offers more flexibility and easier access to your funds compared to a redraw facility.
By using our mortgage offset calculator, you can make informed decisions about your home loan strategy and potentially save thousands in interest over the life of your loan. Why not give it a try now and see how much you could save?
Ready to optimize your mortgage? Use our Mortgage Offset Calculator today and take the first step towards significant savings on your home loan!
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