What is the difference between an offset and redraw account?


Offset and redraw facilities are ideal for people with a variable rate residential mortgage who wish to repay their mortgage as quickly as possible.

An offset or redraw account most benefits those who are disciplined enough not to spend more than the excess funds they contribute.

The key difference between a redraw and an offset account is that the positive balance in a redraw facility is not as easily accessible as an offset account.

Those with a fixed rate mortgage will rarely have access to offset or redraw facilities as the lender sets repayments for the duration of the loan term. It is possible, however, to fix a portion of your home loan and subject the rest to a variable rate with offset or redraw facilities so you can benefit from both types.

We're here to help

If you're interested in ways to reduce your mortgage and pay it off faster, speak to a home loan expert on 13 62 27 to see if a Macquarie Bank Offset Home Loan Package could work to help reduce your repayments.

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Unless stated otherwise, this information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502 and does not take into account your objectives, financial situation or needs. You should consider whether it is appropriate for you. All applications are subject to Macquarie's standard credit approval criteria.