Offset home loan with credit card

No the website says loan reduced by 13years and 4months bringing it to 6years and 8months. Loans.com.au are Australian as far as I know.
So I get what you say but if the 4k per month lets say thats 50k per year and after 6years and 8months that would be close to 400k in offset. I think they assume everyone is going to put the 400k offset money onto the loan and pay it off.
I also forgot to mention there would be about 70k in the offset from day 1.
Still confused

 

Extra Loan Repayments Calculator

70k in offset is like having a loan for $530k
adjust till repayments are $5000 a month see how long it takes to pay loan off
compare with standard $600k loan
difference is time saved??

 

So loan amount 530k
payments $5091.00 per month
10 years to pay it off @2.89%
total interest paid $80,902

So if i was paying an extra 4k per month into offset could that reduce the loan to 6years and 8months? doesn't seem feasible, does it?
If it does than my original loans.com calculations are true albeit + 70k in offset from start

Just wanted to add that having 70k in the offset means only paying interest on 530k but actual loan is still 600k.
So I cant figure it out at all

 

That is not correct if they are saying it will be paid off in 6 years 8 months by just using an offset.

 

Need to get to the bottom of this, bugging me know

 

Generally when these calculators have “extra payments per month” or “offset” then it’s calculating this as paid off the mortgage hence a quoted interest and time saving, not sit it in offset and then redraw it all each month to pay bills.

You would have to model the scenario based off the difference between your payments into the offset minus the withdraws for monthly bills

 

i don't think loans.com.au even offers offset accounts as not an ADI

 

Yes they clearly do mate

 

Thats type of how I originally saw it.
I saw it as making all payments as I mentioned until the amount in offset actually made the interest 0 on the loan.
At that point all the money in offset would be the exact amount to use to pay off the loan.

 

If it a separate loan account that is dressed up to appear to be an offset account.

 

I need to start all over again

 

I think you may be correct sir

 

A standard home loan calculator NAB tells me a 600k loan @ 2.89% is paid of in 7 years if monthly payments are $7898.00

These calculators honestly

 

Forget them. Just learn learn basic excel skills, use the finance functions, etc.

 

How much would the active debt recycling modeling roughly cost??

regards

fritz

 

You would only save $120 a year if you had a constant 4k debt on your card, the reality is at the end/start of the billing cycle your card debt would be lower and you would have an average monthly debt of about 3k or less and would save less than $90 a year, you could perhaps pay a fee and get rewards they may be more beneficial.

 

My sharp calculator confirms the repayment of $7898.27pm. The date each month you repay could change that. A offset could maximise the early repayment since the daily offset benefit would take effect immediately where a loan repayment might occur later in the month meaning more interest for X days.

Calculator took 20seconds

 

Thanks ROLF