Linked account
Offset
Cash stays in a linked account and may reduce interest charged on the loan balance.
- Transaction-style access
- Possible account or package fees
- Partial or full offset rules
Loan features
Offset vs redraw: compare access, cost and control
Offset and redraw can both relate to interest savings, but they are not the same feature. Access, fees, rules and tax context can differ.
- Access to funds
- Interest impact
- Product rules
Which feature are you trying to understand?
Choose the feature or scenario that matches your question.
Next check: Offset
Offset account
An offset account is a transaction or savings account linked to the loan. The balance may reduce the interest-bearing loan balance.
May suitBorrowers who keep savings accessible and want that cash to work against loan interest.
WatchFees, rate differences, partial offsets and product availability.
Check first
- Expected average balance
- Account fees
- 100 percent or partial offset
- Fixed or variable loan rules
Useful tools
CalculatorOffset calculatorA broker can check whether offset cost and product rules stack up for your savings pattern.
Access diagram
Offset keeps cash beside the loan; redraw puts extra repayments into the loan.
Both may affect interest, but access, fees, fixed-loan restrictions and tax context can make the practical result different.
Extra repayments
Redraw
Extra repayments are paid into the loan and may be accessible later under lender rules.
- Access timing
- Minimum redraw amounts
- Lender discretion or limits
Boundary
Investment or future rental use
Tax treatment and record keeping should be checked with a tax adviser before relying on either feature.
- Loan purpose
- Future property use
- Tax adviser input
Questions to ask before choosing offset or redraw
The feature should support real behaviour, not just look useful on a product sheet.
How much cash stays available?
Offset usually needs money sitting in the account long enough to matter.
How quickly do you need access?
Offset may behave like a transaction account. Redraw access depends on lender rules.
What does the feature cost?
Check rate, package fee, account fee and whether a cheaper product would still suit.
Does tax context matter?
If investment or future rental use is involved, speak with a tax adviser before choosing.
Feature fit
Offset and redraw are not the same access question.
The right feature depends on how much cash stays available, how quickly you need access and whether investment or tax context changes the advice boundary.
You are weighing up
- Keeping savings in a linked offset account.
- Making extra repayments and accessing redraw later if lender rules allow.
- Whether future rental use or investment purpose affects the feature choice.
Check before choosing
- Access rules, processing times, redraw limits and lender discretion.
- Package fees, rate differences, partial offset rules and fixed-loan limits.
- Tax-adviser input where deductibility or future property use matters.
Do not assume
- Offset is always worth a higher rate or package fee.
- Redraw access will always be immediate or unchanged.
- The lending feature answers tax or investment-structure questions.
Check before you rely on it
Do not assume every loan includes offset or redraw
Feature availability can depend on rate type, lender, product, repayment history and account rules.
- Fixed loans may limit offset, redraw or extra repayments.
- Redraw access can be subject to lender rules and may change.
- Speak with a tax adviser where investment or deductibility questions matter.
Tools and related decisions
Estimate the interest effect, then check the product rules.
CalculatorOffset account calculatorEstimate how money held in offset may reduce interest over time compared with leaving the loan unchanged.Best forChecking whether savings could work harder inside the loan structure.Estimate only. A broker still needs to check lender policy and fit.Open calculator CalculatorExtra repayments calculatorSee how paying more than the minimum may reduce total interest and shorten the loan term.Best forTesting whether spare cash flow could change the long-term loan path.Estimate only. A broker still needs to check lender policy and fit.Open calculator Decision pageFixed vs variable loansCheck how rate type affects feature access.OpenDecision pageCompare loan typesReturn to the broader loan decision hub.Open
Common questions
Offset vs redraw questions
Does offset reduce my required repayment?
Usually offset reduces the interest charged rather than automatically reducing the scheduled repayment. The exact effect depends on loan and lender rules.
Is redraw the same as offset?
No. Offset is a linked account. Redraw is access to extra repayments made into the loan, subject to lender rules.
Can I get offset on a fixed loan?
Some fixed loans may offer partial or limited offset, but many restrict offset or extra repayments. Check the exact product before relying on it.
Should investors use offset instead of redraw?
That can involve tax questions. Speak with a tax adviser before making a decision based on deductibility or future property use.
Broker review
Compare offset and redraw against your actual money habits
A broker can check rate, fees, product rules and lender options. A tax adviser should handle tax-specific questions.