Money in an offset never pays the loan down, so the loan keeps its original purpose. Redraw is new borrowing, and what you use it for decides whether the interest is deductible.
PS
Priya S. ·
And if your home might become a rental later, an offset keeps your options open. Paying it down and redrawing can cost you deductions.
DK
Daniel K. ·
Watch the fees. Some offset packages cost a few hundred a year, so run the numbers on your balance.
AH
Ahmed H. ·
Makes sense now. Keeping it in offset.
ML
Mei L. ·
This is one to confirm with your own accountant, but it's a common setup for a reason.
JT
Jess T. ·
Wish I'd read this before I paid down my old home loan and then moved out. Expensive lesson.
