How offset accounts actually work
How an offset account works: it reduces the balance your interest is calculated on daily. The mechanism, the tax quirk, and when it is not worth the fee.
Read guidePlain-English explanations of how Australian home loans actually work — the mechanics behind the numbers in the calculator.
How an offset account works: it reduces the balance your interest is calculated on daily. The mechanism, the tax quirk, and when it is not worth the fee.
Read guideIn the early years of a home loan most of what you pay is interest. Understanding the split explains why extra repayments early are so much more powerful.
Read guideSmall regular extra repayments compound into years off your mortgage. Why the effect is bigger than expected, and what to check before you start.
Read guideFortnightly repayments can cut years off a home loan, but only if the amount is calculated the right way. Most explanations skip the detail that decides it.
Read guideA rate rise can increase your repayment, extend your term, or both. Here is what actually changes, how much, and how to build a buffer before it happens.
Read guideLMI is charged when you borrow over 80% of a property value, and it protects the lender, not you. How it is priced, when it applies, and how it is avoided.
Read guideRedraw and offset both give access to money you put toward your loan, but differ in control, access and tax treatment. The distinction matters.
Read guideAustralian home loan interest accrues daily and is charged monthly. That one mechanic explains offset accounts, repayment timing and your statement.
Read guideA shorter mortgage term saves a lot of interest but raises your repayment. There is a third option that gets most of the benefit, with more flexibility.
Read guideA lower rate does not automatically mean a better outcome. Break costs, a second LMI premium and a reset loan term can quietly cancel the saving.
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