Offset Account vs Redraw Facility

Both reduce interest by lowering the balance interest is calculated on, but offset funds remain your own savings while redraw funds are extra repayments — a distinction that matters for tax if you later convert the property to an investment.

Why offset is usually preferred

• Funds stay yours, never blended into the loan balance
• Withdrawals are not treated as new borrowings for tax purposes
• Instant transaction-account access via debit card and BPAY