Have you tried our mortgage offset calculator. This is a powerful tool that shows how extra repayments and money held in an offset account helps pay your mortgage quicker.
Here are a few examples;
1. Jim and Mary have a $300,000 loan over 30 years at an interest rate at 7% per annum. They place $10,000 in their offset account over the life of the loan and they save $63,043 in interest and take 3 years off their loan duration.
2. Tom has a $350,000 loan over 30 years at an interest rate at 7.25%. He pays $300 extra into his loan each month above the minimum repayments. Over the life of the loan he saves $165,257 on interest and reduces his loan term by nearly 9 years
3. In the above example with Jim and Mary and they make extra repayments of $200 per month plus have $10,000 in their offset account they would save $153,056 on interest and pay out the loan in 21 years and 2 months.