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Which is it to be: A Redraw facility or a Offset account

Redraw facility

Ah, the classic offset account vs. redraw facility debate. Both have their perks—it really depends on your financial style. The offset account is like the cool kid who keeps everything separate but still in the same social circle. Your mortgage and savings coexist, and the interest on your loan is calculated on the difference. It’s like multitasking for your money. On the other hand, the redraw facility is the minimalist, letting you dump extra cash into your mortgage but giving you the option to pull it out if needed. It’s a bit more flexible in that sense. But remember, discipline is key here; it’s not a piggy bank for spontaneous purchases. Ultimately, it boils down to your financial habits and goals. Are you the meticulous planner who wants to optimize every dollar? Offset might be your jam. If you crave flexibility and trust yourself not to splurge, redraw could be the one. What’s your gut feeling on this?


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