Finance

Understanding Extra Repayments & Offset — A Complete Guide

How recurring extras, lump sums and offset accounts reduce interest and shorten your loan — with examples and calculator.

RERealEstateCalc Editorial · Property & Finance Research
1 Sept 2024Updated 1 Apr 20261 min read
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Frequently asked questions

Is it better to keep cash in offset or pay down?

Offset preserves flexibility (access to funds) while reducing interest. Paying down permanently reduces balance. Consider redraw rules and your liquidity needs.

Do fortnightly repayments really save interest?

Making the equivalent of 13 monthly payments per year (via fortnightly) can reduce total interest and term, depending on lender calculations.

RE

RealEstateCalc Editorial

Property & Finance Research

The RealEstateCalc editorial team researches and writes about Australian property, finance, and tax topics. All content is fact-checked against official sources including the ATO, state revenue offices, ASIC Moneysmart, and the RBA.

Property financeStamp dutyTaxInvestment analysis

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Understanding Extra Repayments & Offset — A Complete Guide