Need to work out how much you could save on your mortgage if you had money sitting in an offset account each month? Use the offset account repayments calculator below to get an estimate of how much you can expect to save each month based on the details you enter.
To find out what your repayments will be, you’ll need to enter the following information:
- Your loan amount
- The loan term
- Repayment frequency (monthly, fortnightly or weekly)
Type of loan (variable or fixed)
- Interest rate
- Repayment type (principal & interest or interest only)
Once you’ve entered in this information, here’s what happens next.
The repayment calculator provides you with an approximate monthly repayment (in the green box) amount based on how much money you want to borrow and the loan term, i.e, the number of years you wish to take the loan out over.
Once you’ve worked out your regular repayments, click on the tab (option) called “Options to Save”. By clicking this, you are presented with the offset account option, where you can enter in different information to show how much you could save in interest over the term of your mortgage.
The information required here is:
- Extra repayment amount
- Offset account amount
- Repayment frequency
- Lump sum amount (monthly, fortnightly, weekly)
- Lump sum amount (year)
By identifying and comparing different amounts, you can quickly see how much of a difference an offset account can make. Instead of having a savings account, utilise your spare cash and put it into your offset account and watch how your interest and home loan terms reduce.
Australian Credit and Finance can help you save years and money off your loan by providing you with recommendations on different scenarios based on your specific circumstances. Call our home loan experts on 1300 735 557 today.