The quiet superpower of Australian mortgages.
Every dollar above the minimum — paid in extra, or parked in an offset account — attacks the principal directly. The effect compounds for decades, and it's usually the cheapest "investment return" you'll ever get: your mortgage rate, tax-free.
Even $100 a month makes a visible dent — try it.
Money in an offset reduces the balance interest is charged on — while staying available whenever you need it. We assume it stays put for the life of the loan.
Two futures, one loan
The dotted line is coasting on minimum repayments. The solid line is you, with a plan. The gap between them is your money.
Total interest, side by side
Assumptions behind this calculator
- The interest rate stays constant, repayments are monthly, and the extra amount is paid every month from now until the loan is cleared.
- The offset balance stays constant for the life of the loan (in reality it moves around — this is a "steady state" picture).
- No fees, no redraws, and no rate changes are modelled. Fixed-rate loans often cap extra repayments — variable loans generally don't.
A calculator gives you a number. I give you a plan.
These tools use one set of assumptions. Lenders use forty different ones — and matching your situation to the right credit policy is usually worth far more than any online estimate. Twenty minutes, no cost, no obligation.
Things to know: these calculators are a guide only. Results are estimates based on the figures you enter and the assumptions stated on this page — they don't take into account all fees and charges, changes in interest rates, or your full personal circumstances, and they are not a loan offer, pre-approval, or credit advice. Every lender assesses applications differently, and your actual borrowing capacity, repayments and savings may be higher or lower. Before acting, consider whether the results are right for your situation — or better yet, talk it through with a broker. Wombat Home Loans is a Credit Representative of Loans Only Pty Ltd, Australian Credit Licence 561324.