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Welcome
Let's walk through how a revolving credit works in the context of your total home loan.
A revolving credit is most powerful when used alongside a fixed mortgage. Adjust your total loan and see how holding cash in your revolving facility impacts your overall interest costs.
Enter your entire mortgage amount here, including any portions you plan to put on a fixed term.
The rate used to calculate your estimated daily and monthly interest charges below.
Drag the bar to adjust how much of your total loan is kept on a flexible Revolving Credit limit vs. a standard Fixed Loan.
Facility Structure
Interest & Cash Flow
Interest Cost $8.22
Monthly Charge $254.79
Simulate moving money directly into or out of your revolving home loan facility.
A standard fixed-limit revolving credit operates similarly to a large overdraft once the account is fully loaded with funds. The bank typically only requires you to pay the monthly interest, meaning there is no forced principal repayment. If your balance remains at the maximum limit, the principal debt will not decrease.
This structure allows you to deposit and withdraw funds at any time, but it requires financial discipline to be effective. Because interest is calculated daily, putting your savings towards your revolving account reduces your daily interest charges, until you fully 'fill' the account with funds. Over time, this helps to pay down the debt, whilst still giving you access to redraw on the funds at any time, with interest being charged on the funds you redraw.
In some scenarios, like David's below, you can think of revolving as a large overdraft or credit card limit, the only difference being that it's loaned against your house.
See It In Action: Interactive Client Scenarios
Click a profile below to automatically load their real-world strategy into the calculator. We will guide you through exactly how they use their revolving credit.
Sarah:
The Bonus Earner
Parks large lump sums to instantly offset interest.
David:
The Safety Net
Keeps an empty facility to act as emergency cash.
Emma:
The Disciplined Saver
Channels everyday cashflow to shrink debt organically.
Welcome
Let's walk through how a revolving credit works in the context of your total home loan.
A revolving credit is most powerful when used alongside a fixed mortgage. Adjust your total loan and see how holding cash in your revolving facility impacts your overall interest costs.
Enter your entire mortgage amount here, including any portions you plan to put on a fixed term.
The rate used to calculate your estimated daily and monthly interest charges below.
Drag the bar to adjust how much of your total loan is kept on a flexible Revolving Credit limit vs. a standard Fixed Loan.
Facility Structure
Interest & Cash Flow
Interest Cost $8.22
Monthly Charge $254.79
Simulate moving money directly into or out of your revolving home loan facility.
A standard fixed-limit revolving credit operates similarly to a large overdraft once the account is fully loaded with funds. The bank typically only requires you to pay the monthly interest, meaning there is no forced principal repayment. If your balance remains at the maximum limit, the principal debt will not decrease.
This structure allows you to deposit and withdraw funds at any time, but it requires financial discipline to be effective. Because interest is calculated daily, putting your savings towards your revolving account reduces your daily interest charges, until you fully 'fill' the account with funds. Over time, this helps to pay down the debt, whilst still giving you access to redraw on the funds at any time, with interest being charged on the funds you redraw.
In some scenarios, like David's below, you can think of revolving as a large overdraft or credit card limit, the only difference being that it's loaned against your house.
See It In Action: Interactive Client Scenarios
Click a profile below to automatically load their real-world strategy into the calculator. We will guide you through exactly how they use their revolving credit.
Sarah:
The Bonus Earner
Parks large lump sums to instantly offset interest.
David:
The Safety Net
Keeps an empty facility to act as emergency cash.
Emma:
The Disciplined Saver
Channels everyday cashflow to shrink debt organically.