🧭Offset Account VS Redraw Facility
We will help you set it right from the start.
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A Strategic Comparison for Australian Homeowners & investors
No obligation, free consultation, no impact on your credit sore.
📈Offset Account Key Features:
• Interest Savings.• Full Access.• Multiple Accounts.• Tax Efficiency.• Flexibility.
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No obligation, free consultation, no impact on your credit sore.
🔁Redraw Facility Key Features:
• Interest Savings.• Access Restrictions.• Cost-Effective.• Best for Discipline.• Owner-Occupier Friendly.
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With only few details, no documents and no impact on your credit score.
Case Study:
🔍 What Happens to Redraw When You Refinance?
This is a common pitfall for borrowers who assume their redraw funds will carry over automatically. In reality,
redraw balances are not guaranteed to transfer—they’re treated as part of the loan reduction.
• Original loan: $85,000• Extra repayments made: $15,000• Loan balance at refinance: $70,000• New lender refinances based on $70,000—not the original $85,000• Result: You lose access to the $15,000 redraw unless it’s withdrawn before refinancing
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⚠️ Risks to Watch For:
• Loss of redraw funds: If you don’t withdraw your redraw before refinancing, those funds may be absorbed into the new loan balance.
• Reduced borrowing power: Your new loan may be approved for a lower amount, limiting future redraw or equity access.
• Tax implications: For investment loans, withdrawing redraw funds before refinancing may affect deductibility if not handled correctly.
• Offset vs redraw confusion: Offset accounts are separate from the loan and retain their balance, while redraw is embedded in the loan structure.
✅ What You Can Do?
Check your redraw balance before refinancing and clarify with your lender how it will be treated.• Withdraw redraw funds if you want to retain access before the refinance settles.• Consider offset accounts for more flexible access to surplus funds without affecting your loan balance.• Speak to your broker or lender to structure the refinance in a way that preserves your financial position
Which Should You Choose?
🧠 “Smart Tips Before Refinancing"
• ✅ Review your redraw balance• ✅ Confirm how funds will be treated by the new lender• ✅ Withdraw redraw funds if needed before settlement• ✅ Compare offset flexibility vs redraw discipline• ✅ Speak to your broker for tailored advice
🎁 Bonus: “Loan Mall Tip"
💡 Loan Mall Tip: Offset accounts offer flexibility and control, while redraw facilities reward discipline. The right choice depends on your lifestyle, goals, and values. Let us help you structure it right.
With a Simple step, no obligation and no impact on your credit score.
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