Using an offset account to reduce your interest payments can save you tens of thousands of dollars over the life of your home loan. Our home loan offset calculator shows you how much interest you could save by linking an offset account to your mortgage, as well as how much faster you could pay it off.
How do I use the home loan offset calculator?
Our offset calculator is simple and straightforward to use. Start by entering your loan amount, interest rate, loan term and repayment frequency, then input the balance you have in your offset account.
Your results will show what your monthly payments would be, interest you can save and how much time you could shave off your loan term. You’ll also see a chart breaking down the remaining balance over time, highlighting how your loan would reduce faster if your offset account balance stays steady.
How to reduce your home loan interest without an offset
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Use a redraw facility
A redraw facility is a popular feature that allows you to make extra mortgage repayments and then withdraw funds later if needed. This helps reduce your interest while still giving you access to your money – and in many cases, you can have both a redraw facility and an offset account on your home loan.
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Increase the size of your deposit
The more you’re able to offer as a deposit, the less you’ll need to borrow – and the lower your interest payments will be as a result. In addition, if you’re able to offer more than the standard 20% deposit, you’ll often be eligible for a cheaper home loan.
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Refinance to a lower rate
It’s worth reviewing your home loan every year or two to see if refinancing could get you a lower interest rate. Taking advantage of lower interest rate loans as they are offered could save thousands overall on the interest you pay over the life of your loan.
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Increase your repayments
Try making additional repayments whenever you can, whether it’s a set amount each month or little top-ups. If paid consistently, these extra contributions can significantly reduce your loan term and the total interest you pay.