Offset Account Impact Calculator

Offset accounts and construction loans

Not all construction loans include an offset account — it's an important feature to ask about when comparing lenders. Here's how offset interacts with construction:

During construction

At each progress payment stage, funds are drawn from your loan into the builder's account. Some lenders allow you to hold funds in your offset until each drawdown is needed, reducing the interest-only payments during construction. Others structure the facility differently — ask your broker how each lender handles this.

After construction

Once your loan converts to P&I, the offset works identically to a standard home loan — every dollar in the account reduces your effective loan balance. Keep your salary, savings, and emergency fund in the offset for maximum impact.

Fixed vs variable with offset

Offset accounts are not available on fixed-rate loans (or only partially). If you want the flexibility of an offset, choose a variable rate or a split loan (part fixed / part variable with offset on the variable portion).