Assistance with Mortgage/Budget Calculator (Excel)

Hi,

I have been trying to find/create a mortgage calculator/forecaster for excel but havent found anything from the usual locations online.

What I need is probably too specific and will need a combination of a couple different calculators out there, while i was working on it i had the idea to just ask here in parrallel.

Requirements:

Offset and Fixed split calculations with the ability to see how extra repayments could assist with reducing the loan length and interest over time.

The image below gives somewhat of a visual representation of what i want to see but have alongside it the split loan and how adding the extra repayments would impact the overall loan term and interest payable.

As mentioned i am currently working on one as i type this but if someone has something id be interested in seeing it to save me time, i am tying this in with some other budget planners i've found so they all tie in together and i can determine how to divide my money across the offset accounts and high a interest savings account.

Below is what i am trying to determine in terms of making the right financial decision.

Would the recommendation be to sit the remainder of savings into a high interest savings after the offset account reaches a balance that is equal to the offset loan? Then pay out the loan prior to the 2yr fixed end date? below are example numbers of my scenario.

eg,
Fixed loan amount
$200,000

Min repayment (fixed)
$370/wk

Offset loan amount
$100,000

Min repayment (offset)
$130/wk

Offset account balance
$80,000

Weekly savings (after min repayments)
$500

 

Define "high interest savings" please. In the current credit environment it would probably be 2.x% or some such low number. Your time might be better spent going out and buying a couple of good properties. (I'm not a doctor but you sound to be suffering from a disease called analysis paralysis).

 

The $200K fixed amount - are you with a lender that allows offset against a fixed loan? (most don't but some do)
Paying out the fixed loan prior to the end of the fixed term will incur break costs., the closer to the end of the fixed term the less these costs will be.Is your intention just to pay down the debt as fast as possible? Or are you planning on buying more properties in the future, where the saved funds could be used as deposits etc?

 

I think this is accurate.

Basically just trying to understand the best path to take, I will clear up my wording for this post too.

Total Loan
$300,000

Split to
$100,000 offset account - $130/wk
$200,000 - $370/wk fixed for 2 years (ability to make extra payments of up to $10,000p.a without penalties)

Savings account (in offset)
$80,000

Weekly Savings
$500

I will just ask the questions direct as it may give you a better understanding of where i am getting stuck.

1. If i were to build an extra $20k into the offset account, would there be any incentive in paying off this part of the loan in full (or close to) or would i be better off keeping the money in the offset, and any $$'s above the balance of the offset, put that into a savings account?

2. Would investing that $100,000k into a granny flat giving a secondary source of income on the property be smarter?

3. Is the goal to kill the loan off as quickly as possible, or is it best to try build equity into the property to leverage an investment property in the coming years?

I guess most of my questions would be me over analysing this all but purely because i want to make the best financial decisions to build a comfortable future. I have never properly understood how much extra to put toward the loan, only that paying the minimum will lead to a long life of debt and paying big interest.

Apologies if this is confusing or contradictory in any way, just confused on the best steps to take.

 

Lindsay is right - most fixed rate loans don't allow for an offset account.

A chat with a good broker will be a good use of your time - getting some professional eyes on your situation will cut a lot of the trial and error and mean that any calculator you create will give you accurate results.

Otherwise you'll spend a heap of time optimising your position, only to find it's based on assumptions that are incorrect.

 

What are your goals? What does a comfortable future look like for you? How much risk are you willing to take?

The goal is to achieve what ever it is you're trying to achieve.

If you're not SUPER clear on what you're trying to achieve, it's literally impossible to gauge what the best steps are.

Paying off a loan can be the perfect thing to do...or it can be the WORST thing to do...and it depends entirely on your goals and where you're sitting right now in your current situation.

Right now, you're focused on the very short term strategy when it seems like long term, your strategy is unclear.

Long term first, then the short term will become much clearer.

 

Currently the home loan is split in 2
200k - fixed
100k - variable with offset

does this answer that question? Apologies if I am leaving out something important or using the incorrect terminologies.

Comfortable for us is being able to continue to invest in property or a granny flat over the 5-10 years, with the vision to end up on acreage and little to no mortgage after cashing in on investments 10-20yrs.

I see you have a service you offer, does this assist in these types of situations where one needs guidance and strategies?

To date I’ve used the barefoot investor mentality to get to the home loan and stability, it’s just the future that is unclear as getting a home was one of the biggest goals, but now the next 5-10 is unclear as I have no expectations to which path to take at this stage but more want to view different scenarios and assess the risk verse return.

Thanks for this I will look into this to understand if it is suitable. Are there any books or resources you’d recommend?

 

Yes we can definitely help with this - send me an email if you like, or book some time directly - link to my calendar is below