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A mortgage offset account is a transaction account linked to your home loan. The balance in your offset account is deducted from your loan principal for the purpose of calculating interest. You still owe the full loan amount, but you only pay interest on the net balance.For examp
Some lenders offer multiple offset accounts linked to one loan. This is useful for managing different savings goals (e.g., bills account, holiday fund) while all balances offset your mortgage.
Both achieve the same interest savings. The key difference is access: money in an offset account can be withdrawn anytime, while extra repayments may only be accessible via redraw (which can have restrictions). If flexibility matters, choose offset.
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