We have created this offset calculator for you to work out how much you can save with an offset account. Having an offset account attached to your home loan is the easiest way to save interest costs on your home loan.
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Most variable rate loans have the option to have an offset account attached to it. We advise all of our clients to make sure they have their pay deposited directly into the offset. Every day a dollar is in the offset account, you do not have to pay interest on the home loan for that amount. For a $500,000 loan, if you assume you have $20,000 sitting in the offset account, you would save 2 years off the life of the loan and over $62,000 in interest.
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Imagine what you could do with the interest saved over the life of the loan. Banks make a lot of their money by charging you interest and you can see what effect it has for you (and the bank) if you have a relatively small amount in your offset account. In the example above, the $62,000 of saved interest costs means you could either retire a little earlier or at least retire more comfortably. At Orange Mortgage and Finance Brokers our goal is for you to pay off your primary residence as quickly as possible and saving some money in to the offset account is a simple way do do this.
Use our handy extra repayments calculator to help with this.
Use the offset calculator below to see how much you can save.