Good to know
How does an offset account work?
The balance in your offset account is subtracted from your loan balance before interest is calculated. So $30,000 in offset on a $600,000 loan means you are only charged interest on $570,000 — while your $30,000 stays fully accessible.
Is offset better than paying extra?
It gives similar interest savings but keeps your money available to withdraw. That flexibility is why many people prefer it — though offset loans sometimes carry a package fee, so it is worth comparing. We can help you weigh it up.
Does this assume the balance stays constant?
Yes — for simplicity it assumes your average offset balance stays the same over the loan. In reality it moves with your spending, so treat this as a guide.