With a home loan offset account every dollar in your account is offset against your variable rate home loan balance.
For example if you have $1,000 dollars in your offset account, this will reduce the balance that your interest is calculated on by $1,000 dollars. That’s $1,000 dollars you’re not paying interest on, so more of each repayment goes to paying off your loan rather than paying interest.
An offset account is not available on all home loans. Please check the loan product features or your loan contract to see if you are eligible for redraw.