Offset Account VS Redraw Account: What’s the Difference?

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Offset Account vs. Redraw Account: What’s the difference? An Offset Account is a transactional account linked to your mortgage.

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The balance in your offset account is offset against the balance owing on your home loan, so you only pay the interest on the difference.

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For example, if you owe $500,000 on your mortgage, and you have $50,000 in your offset account, you only pay the interest on $450,000.

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Meanwhile, a Redraw Facility allows you to make extra repayments on your mortgage, then redraw these extra funds if you need them later on.

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You only pay interest on the remaining balance of your loan after the extra repayments have been made. So, which is right for you? Speak to your mortgage broker to determine the best solution for your situation.