An offset account is a transaction account linked to your home loan. The balance in your offset reduces your loan principal for interest calculation purposes — saving you interest on money you can still access any time.
How It Works
$500,000 loan + $50,000 in offset = interest charged on $450,000
At 6.0% p.a. that saves $3,000/year on money you can access anytime.
Offset vs Extra Repayments
| Offset | Extra Repayments | |
|---|---|---|
| Interest saving | ✓ Same | ✓ Same |
| Access to funds | ✓ Instant | Via redraw |
| Works on fixed? | Rarely | Usually capped |
Real Savings
- $20k offset on $500k: ˜$1,200/year | ˜$36,000 over 30yr
- $50k offset on $500k: ˜$3,000/year | ˜$90,000 over 30yr
- $100k offset on $600k: ˜$6,000/year | ˜$150,000 over 30yr
Calculate Your Offset Savings
Enter your loan details and offset balance for exact savings.
Disclaimer: General information only. Not financial or legal advice. Consult a qualified professional before making decisions.