What’s the difference between offset and redraw?
When you have a loan with a linked offset account, you are charged interest on your loan amount minus the amount of the funds you have in the offset account. If you have a Flex variable loan, you can nominate any of your ubank accounts to be linked as an offset account. However, you can’t earn interest on your Save accounts once linked an offset account. You also can’t have multiple loans attached to the same offset account.
Redraw will appear when you make additional payments to your home loan in advance or above your minimum payment. It’s available on all our variable and fixed loans. Keep in mind, if you make or redraw more than $20K in additional payments on a fixed loan, you might be charged break costs.