Explore how money held in an offset account could reduce the interest charged on your home loan. Use the calculator to estimate the potential effect over time. Actual savings depend on your offset balance, interest rate and loan conditions, including whether the account provides a full or partial offset.
An offset account can be useful, but its value depends on how you manage your money and the costs of the loan. FI Collective helps you compare offset features, rates and fees when reviewing your finance, so you can consider whether the potential benefits suit your circumstances.
No. The money remains in a separate account and reduces the balance used to calculate interest, according to your loan’s offset arrangements. Your loan balance reduces through repayments rather than simply by holding money in the offset account.
Not necessarily. Some loans with offset facilities have higher fees or interest rates. The benefit depends on the amount you usually keep in the account and the loan’s costs and conditions. Compare the potential interest savings with those additional costs.
Not sure where to start? Tell us what you’re planning, and our team will help you understand your finance options and what comes next.
