Offset Accounts v Redraw Facility or LOC There are many methods for Australian Expats living overseas and those on Temporary Resident or Spousal Visa’s to pay their home loan (mortgage) off earlier. Over the coming months I will explore a few of these but this month we are looking at using an offset facility v a redraw facility or line of credit (LOC). What is an offset account What is a redraw facility, What is a line of credit facilty (all in one account). What is an Offset Account? An offset account is generally a standard transaction account that you would normally use to have your pay deposited into and pay for your groceries, fuel etc by using the debit card attached to the account. This transaction account becomes an offset account when it is attached to a home loan and is said to “offset the interest in that home loan”. To understand this it is important to note that… Read More
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