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Offset savings — what your cash buffer shaves off
An offset account holds your cash against the loan balance for interest calculation only. The bigger your average offset, the more interest you skip — and the faster you're done.
Years
Your typical balance held in the offset across the year
Interest saved
$149,407
vs. paying the loan with no offset
Time saved
3y 4m
Loan paid off 40 months early
Total interest — no offset
$691,870
Total interest — with offset
$542,463
How offset works
An offset account is a transaction account linked to your home loan. The balance is netted against the loan balance for interest calc — so $40,000 sitting in offset on a $650,000 loan means interest is charged on $610,000 only.
Your minimum repayment doesn’t change. But because more of each payment now goes to principal, the loan is paid off faster — and you save tens of thousands in interest over 30 years.
The catch: offset accounts are usually only available on the package or premium variant of a loan, with a higher rate or annual fee. The break-even depends on your average balance — for some borrowers a basic loan with extra repayments works out cheaper.
Want a real number, not a ballpark?
These figures are estimates. A 30-min broker consult will run your specific scenario against the actual lender policies — no fees, no obligation.
Important: This calculator provides an estimate only and does not constitute credit advice. Actual rates, repayments, fees and approval are subject to lender policy and your individual circumstances. Comparison rates are based on a $150,000 loan over 25 years on a secured basis — see footer for the full disclaimer.