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Both offset accounts and redraw facilities reduce the interest you pay on your mortgage, but they work differently:Offset: A separate transaction account. Your money stays liquid and fully accessible. Interest is calculated on loan minus offset balance.Redraw: Extra repayments yo
Yes, assuming the same balance. $50,000 in offset and $50,000 in extra repayments (available via redraw) both reduce your interest calculation by $50,000.
Yes. Many home loans offer both an offset account and a redraw facility. You could use offset for everyday funds and redraw for locked-away extra repayments.
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