Skip to content

MyState offset

The home loan offset is the centre of my current money strategy. Every dollar here reduces mortgage interest — that beats most savings accounts without locking cash away.

How offset works

With an offset account, the bank subtracts the offset balance from the loan principal when calculating interest. You still repay the loan normally; you just pay less interest while cash sits in the linked account.

Simple mental model:

Interest charged on ≈ (loan balance − offset balance)

Money in the offset is liquid — transfer out when needed (bills, Vanguard top-up, genuine emergency). It is not a separate "savings product" with its own rate; the benefit is interest saved on the mortgage.

~$31k buffer goal

Target offset balance: ~$31k. That figure is a round-number buffer — emergency fund and general savings in one place. Live balance changes with pay and spending; check the MyState app for the exact number.

If offset is… Typical action
At or above ~$31k Surplus can go to Vanguard on schedule
Below target Pause or reduce investment transfers; rebuild from pay first
Dropping after big expense Normal — refill over the next pay cycles

The old pre-home logic (Macquarie "Use" / "Don't Use", separate uBank emergency) is archived in Saving. One offset replaced most of that complexity.

Pay-cycle habits

Income: McDonald's crew work — Career. Pay lands on a regular cycle (weekly/fortnightly depending on roster).

After each pay (or every second pay if that is easier):

  1. Glance at offset — still near ~$31k?
  2. Cover upcoming bills — anything due before next pay stays accessible (Macquarie or card float if still in use)
  3. Leave the rest in offset — default is do nothing; idle cash here saves interest
  4. Only then — scheduled Vanguard contribution if buffer is healthy

No automatic 50/50 split between employers anymore. Woolworths is gone; one paycheck stream, one primary savings bucket.

What lives where

Item SaxDocs (this site) Vaultwarden
Strategy, targets, habits Yes No
~$31k buffer goal Yes No
Lender name (MyState) Yes —
Full street address No Yes
Loan / offset account numbers No Yes
MyState login password No Yes
Settlement PDFs, lender letters No Attachments / secure note

Docs explain how money moves. Vaultwarden holds credentials and identifiers you need to log in or reference on a form.

Home loan context

  • Lender: MyState
  • Property: Sunbury, Victoria (suburb only in docs)
  • Offset: primary cash bucket

For anything needed at settlement, refinancing, or tax time that is not in the app — check Vaultwarden first.