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this post was submitted on 03 Feb 2026
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AusFinance
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I've been doing the same, and it really is the way to go. Haven't had much in the way of holidays or anything else expensive, but my house will be paid off by next year if all goes well.
Money sitting in the offset is also earning at the same rate as your mortgage interest rate, which is pretty good compared to term deposits or savings accounts.
Oh man, you get offset interest? We don't. But it has been satisfying watching it drop our tital loan for interest payments as it grows
No, but by the nature of offsetting your loans interest, it works out about the same. Every dollar in your offset is saving you from paying 5% on a dollar you owe on the loan.
To use silly numbers, if you have a loan at 5% for $100, and a savings account at 2%, at the end of a year, your down $5 on the loan, and up $2 on the savings. If instead you have $100 in your offset, your down $0 on the loan, so your offset has functionally earnt at 5%.