Redraw vs Offset: What’s the best choice for you?

Both can save you money and pay off your home loan faster but which is the right choice for you? How they work Redraw A redraw feature allows for additional payments to be made directly into your home loan thus reducing the principle balance and therefore the overall interest charged. You can withdraw/redraw this excess when you need it. By paying the money directly into the loan, a redraw facility allows you to directly reduce the balance of your loan, rather than simply reducing interest paid in the short-term. For example if you have a $300,000 loan with a $20,000 …