Australian Mortgage & Offset Calculator
100% Offset Accounts • Accelerated Fortnightly Savings • Extra Payments • LMI • APRA +3% Buffer
Year-by-Year Amortization Schedule
Detailed breakdown of principal, interest, and offset trajectory
| Year | Starting Debt | Principal Paid | Interest Paid | Offset Balance | Ending Debt |
|---|
Next Steps & Related Australian Calculators
Strengthen your financial plan with these interconnected statutory computational models.
Borrowing Power Calculator
Calculate maximum loan capacity under APRA serviceability guidelines.
Stamp Duty Calculator
Calculate state transfer duty, concessions, and first-home exemptions.
First Home Guarantee (FHG)
Buy with a 5% deposit and eliminate Lenders Mortgage Insurance.
Rent vs. Buy & Wealth Trajectory
30-year financial comparison including PPOR CGT exemption.
💡 How Australian Mortgages Work: Offset, Fortnights & APRA
1. How a 100% Offset Account Works: In Australia, home loans calculate interest daily on the net balance (\(\text{Loan Balance} - \text{Offset Balance}\)) and charge interest monthly. Depositing your salary and savings into an offset account directly reduces the interest portion of every payment, causing more of your repayment to wipe out principal.
2. The Accelerated Fortnightly "13th Month" Effect: By opting for Accelerated Fortnightly repayments, you pay half of your monthly payment every two weeks. Because there are 26 fortnights in a year, you effectively make 13 full monthly repayments each year rather than 12, knocking years off your 30-year term automatically.
3. APRA +3.00% Serviceability Buffer: Under guidelines set by the Australian Prudential Regulation Authority (APRA), banks cannot simply assess you on your contract rate (e.g. 6.14%). They must test your capacity to repay at a minimum buffer of +3.00% (e.g. 9.14%) to ensure financial resilience against rate hikes.