How much will I save on my home loan if I have extra in my offset account?
Paying a little extra can go a long way when it comes to offsetting your home loan repayments.
By using our Home Loan Offset Calculator, you’ll be able to find out precisely how much interest you can save by offsetting your loan. Input the loan amount, interest rate, loan term, repayment frequency, and how much you’re considering using to offset the account balance below.
When you make extra repayments, you’re diminishing the length of your loan. In turn, the interest payable drops as well. When you opt to refinance to a lower interest rate and follow with making these extra repayments, you have the potential to save even more money.
Making those higher repayments means you’re reducing the principal on your loan quicker than expected. While a more significant additional repayment is better, a small one can also make a tremendous difference in how much you end up paying for your mortgage.
You can make additional repayments to a 100% offset account and receive the same benefits as if you were to make them to your loan account. For those who have the discipline, it’s ideal to make the extra payments to your offset account.
When you send the additional payments to that account, you’re able to access the funds with ease in the future. As long as you don’t access those funds in your offset account, you will maintain the benefit of making those extra repayments.
Paying off your home loan faster will save you money on your mortgage. So if you’re looking to use your offset account to repay your home loan, calculate how much you will save by making additional repayments.
Have any questions? Reach out to one of our home loan experts to gain the insight you need to pay off your home loan faster.