Welcome back to another episode of the 360 Money Matters Podcast!
In this episode, we tackle one of the most common questions we receive: what’s the difference between offset and redraw accounts? While both reduce the interest you pay on your mortgage, understanding the crucial differences could save you significant money down the track.
In this episode, we break down how each account works, explain why your repayments stay the same even with money in offset, and reveal the critical tax implications that catch homeowners off guard when their circumstances change. Using real-world examples, we show how choosing redraw over offset can destroy your tax deductibility if you ever convert your home to an investment property.
Whether you’re a first-time buyer or refinancing, this episode will help you make the right choice for your situation and avoid costly mistakes.
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This podcast contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This information is provided by Billy Amiridis & Andrew Nicolaou of 360 Financial Strategists Pty Ltd, authorized representatives and credit representatives of Akumin Financial Planning – AFSL 232706
Episode Highlights
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How offset and redraw accounts both reduce mortgage interest
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Why your repayments stay the same regardless of offset balance
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The critical tax difference between offset and redraw for investment properties
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Real-world scenario: converting your home to an investment property
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When redraw accounts might actually be the better choice
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Maximizing tax deductibility for future flexibility
