We’ve Helped Over 150+ First Home Buyers
We’ve Helped Over 150+ First Home Buyers
See how an offset account could reduce your interest and shorten your loan term over time.
See how an offset account could reduce your interest and shorten your loan term over time. This calculator shows the difference that keeping savings in an offset account can make over the life of your loan.
* Update version: January 2025
Your full financial situation and requirements need to be considered prior to any offer and acceptance of a loan product.
The information contained in this website is of a general nature and does not take in to account your personal needs and requirements. The figures shown in the calculators do not constitute an offer for finance. Lender policy and conditions, fees and charges will apply.
The information provided by the calculator is intended to provide illustrative examples based on the stated assumptions of your input. Results are a guide only and do not constitute financial advice or a guarantee of an outcome. You should always discuss your individual circumstances with a representative of Houses For Heroes.
An offset account is a transaction account linked to your home loan. The balance in the account is offset against your loan balance, reducing the amount of interest you are charged each day. For example, a $20,000 offset balance on a $500,000 loan means you are only charged interest on $480,000.
The savings depend on your loan balance, interest rate, and the average balance you maintain in the offset account. Even a modest offset balance can save thousands of dollars in interest and shorten your loan term. Use the calculator above to model your own scenario.
For many borrowers, an offset account can be a valuable feature. By keeping savings in the account, you reduce the amount of interest charged on your home loan, which can lead to meaningful savings over time.
If you maintain a reasonable balance, the interest savings often outweigh any additional fees the account may attract. Speaking with Dan or one of our team can help you compare loan options with and without offset features to determine what works best for your situation.
An offset account is a separate transaction account where your savings reduce the interest charged on your loan daily. A redraw facility allows you to access extra repayments you have made directly from your loan. Offset accounts generally offer more flexibility for day-to-day transactions.
Some lenders offer offset accounts on fixed rate loans, but this is less common than on variable rate loans, and the offset may only apply to part of the balance. It is worth checking loan product features carefully, and a broker can help you compare options.
No. Money in an offset account does not earn interest. Instead, it reduces the amount of interest charged on your home loan by offsetting your loan balance.
Because home loan interest rates are typically higher than standard savings account rates, this can often be a more effective way to use your savings.
For personalised financial advice, it’s best to speak with a qualified financial planner or seek guidance to determine what approach is most suitable for your situation.
If you are not using an offset account or have not reviewed your loan recently, there could be savings sitting on the table. Book a free call and Dan can take a look.
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