Offset mortgage calculator
See how much interest and time you could save by keeping your savings in an offset account linked to your home loan. Enter your own interest rate to compare any lender.
An offset home loan links your savings or everyday accounts to part of your mortgage. Instead of earning interest, the money in those accounts reduces the balance you’re charged interest on. If your repayments stay the same, more of each repayment goes towards the loan, so you pay less interest and can be mortgage-free sooner, while your savings stay available.
How much could an offset save you?
Enter the part of your loan you’d put on an offset (often a floating portion), the interest rate, and the savings you’d keep in your offset accounts.
| Repayment | |
| Interest without offset | |
| Interest with offset | |
| Paid off in (with offset) | |
| Effective interest rate today |
Your loan balance over time
This calculator gives an estimate only, and isn’t financial advice. It assumes your repayments stay the same, the interest rate doesn’t change, interest is calculated on your loan balance less your offset savings, and your offset savings are never withdrawn. Your offset savings can’t reduce the balance below zero, and once they match the balance, the remaining loan is paid off from them. Not all lenders offer offset, and offset is usually only available on floating loans, which can have higher rates than fixed. The effective rate today is your rate applied to the balance after your current offset savings.
How offset works
Say you owe $500,000 and keep $30,000 in accounts linked to your offset. You’re only charged interest on $470,000. Your repayments stay the same, so the interest you don’t pay goes straight to reducing your loan, and your savings stay available if you need them.
When offset can make sense
- You keep a healthy savings buffer or emergency fund.
- Your income lands in your account before bills and spending go out.
- You want flexibility to access your money, unlike a lump-sum repayment.
Things to weigh up
- Offset is usually only on floating loans, which can cost more than fixed rates.
- Your savings won’t earn interest, though they save mortgage interest instead, which isn’t taxed.
- Many people split their loan: most of it fixed, with a smaller offset portion.
Not sure if offset suits you? Compare it with a split of fixed terms, or try our repayment calculator.
This is general information only and isn’t personalised financial advice. Please talk to one of our advisers before making changes to your mortgage.
Offset questions
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What is an offset mortgage?
An offset mortgage links your savings or everyday accounts to part of your home loan. The balance in those accounts is subtracted from your loan balance when interest is calculated, so you pay less interest while keeping access to your money.
Do all banks offer offset?
No. Several New Zealand lenders offer offset, usually on floating loans, and the details differ. We can compare the options for you.
Is offset better than paying a lump sum off my mortgage?
A lump sum reduces your loan for good, while offset keeps your money available. If you’re unlikely to need the money, a lump sum can work just as well. If you want flexibility, offset can suit better.
Can I have offset and fixed rates together?
Yes. Many people split their loan, with most of it fixed and a smaller floating portion with offset.
Is offset right for you?
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