If I had $10,000 in my offset account for a $500,000 home loan, how much could I potentially shorten a 30-year loan at an interest rate of 5.99%?

🔢 Loan Details:

• Loan amount: $500,000

• Average Offset account balance: $10,000

• Effective loan balance (for interest calculation): $490,000

• Interest rate: 5.99% p.a.

• Loan term: 30 years

• Repayments: Principal & Interest (assumed)

💰 Interest Saved Estimate:

By keeping $10,000 in your offset account consistently over the life of a 30-year loan at 5.99% interest, you’ll save approximately:

💵 $63,327 in interest
⏳ ~11 months off the loan term

This figure is a guide only because of the following variables:

• You can keep that $10,000 in your offset for 30 years (doesn’t dip below it).

• Interest rate remains constant (in reality, it will fluctuate).

• Standard principal & interest repayment structure.

This is a general guide to show you the savings $10,000 kept in your offset account for a $500,000 Mortgage may make over the lifetime of your loan. If you’d like us to run some more accurate numbers that reflect your unique situation, please reach out and book a complimentary discovery call.

The information contained is general information only and does not consider your personal objectives, financial situation and needs. We strongly recommend that you do not act on any information provided in this website without individual advice from your trusted advisor. You should also obtain a copy of and consider the Product Disclosure Statement for all financial products before making any decision.

Best Foot Forward always tries to ensure that all information on our website is accurate. However, please always consider our Disclaimer policy when reading our website.