If you’ve got a home loan, you’ve probably heard of offset accounts and redraw facilities. Both can save you money on interest, but they work differently and the right choice depends on your situation.
An offset account links to your home loan and reduces the balance interest is calculated on. Your money stays accessible for everyday use. A redraw facility lets you make extra repayments to reduce your loan balance, with the option to pull those funds back out later.
For most owner/occupiers, it comes down to how much flexibility you need. For investors, there are tax implications worth considering, so it’s worth chatting to your accountant too.
Not sure which one suits you? That’s what we’re here for. Get in touch with the team at Thinking Big Finance for a free chat.