What if my offset savings are equal to my loan amount?
If you save enough money, over many years, your offset savings could eventually equal the amount that you owe on your home loan. This is obviously a great position to be in! But you have to decide what to do next.
You've essentially paid your mortgage off and if you want to end the home loan, you can move the offset savings over to the loan and then discharge the mortgage. Now you're debt-free.
However, all of your offset savings have now been spent. If this is the bulk of your savings, you will suddenly be very low on cash, which leaves you financially vulnerable if an emergency or unexpected expense arises.
You could decide to repay most of the loan, leaving some savings accessible while you repay the final loan amount. Or you could keep going with all of your savings off-setting your loan. This means that every mortgage repayment you make will just be paying down the loan's principal, and you won't be paying any interest at all.
If you're not sure what the best option is for you, consider speaking to an experienced mortgage broker.