How Much Does a Home Loan Really Cost? Understanding Interest Over 30 Years

A quick reality check on home loan maths - At an interest rate of 5.3%, every $1 you borrow ends up costing you about $2 over the life of the loan.  That’s your original dollar plus another dollar in interest.

But here’s the part many people overlook:

If that same dollar is sitting in your offset account (or paid into your loan as an extra repayment) you’re not charged any interest on it at all. Compare that to the dollar sitting in your bank account earning a lower interest rate than your home loan rate, and paying tax on the interest as well!

One dollar might not sound like much, but start adding zeros and the impact can be massive.

Small decisions compound.  Smart structure compounds even faster.

If you want to keep your interest bill as low as possible, extra repayments and a well‑used offset account can make a huge difference!

Want A Loan is a Corporate Credit Representative (No. 490204) of BLSSA Pty Ltd ABN 69 117 651 760, Australian Credit License 391237.