What happens when your offset equals your mortgage?

“Fully offset” describes how much of the loan is covered by offset cash. “Paid off” means the loan balance has been repaid. Formally closing the loan and discharging the mortgage are lender processes, not actions a calculator can perform.

For example, Macquarie says required principal-and-interest payments continue even when a loan is fully offset. Excess offset cash does not earn interest or offset another loan under its stated terms. Other lenders’ conditions need their own checks.

Take the example above and withdraw $20,000 without changing the loan balance. The offset becomes $180,000 and $20,000 of the loan is exposed to interest again.

A projected full-offset date is therefore a milestone under the entered assumptions, not a guarantee that interest will never resume. Future expenses or withdrawals can change the picture. Fees and any already-accrued interest are separate from the zero-interest calculation.

On the main calculator page, look for “When offset = loan balance”. The choice changes the projection; it does not move money or instruct a bank.

Keep saving in the offset

The loan stays open in the model and scheduled repayments continue. Further savings stay in offset, including amounts above the loan balance.

Redirect new savings to cash

Once the loan is covered, new surplus goes to a separate cash balance. That balance earns 0% in this model.

Redirect new savings to investments

The loan stays open and surplus follows the entered return assumption. This is a mathematical scenario, not an investment recommendation.

Pay out the loan, then invest

The model uses offset cash to settle the loan and accrued interest once enough cash is available. Subsequent surplus, including freed repayments, follows the entered investment-return assumption.

For the redirect options, a separate setting controls whether existing offset cash above the remaining debt also moves. Assumed investment returns are constant and exclude any separately calculated sales tax. They are not forecasts.

Moving $200,000 from offset to settle a $200,000 loan removes both cash and debt. Ignoring fees, that transfer alone does not increase net worth by $200,000.

Similarly, a projected payoff date can move dramatically when a payout option is selected, without producing an equally dramatic change in interest. A loan that was already fully offset was already attracting no new interest while it remained covered.