19 Nov VIDEO – A loan re-draw and an offset – the same but different
A loan re-draw is when you have pre-paid money into your loan and you have the ability to re-draw that amount. It is like repayments in advance of what you need. An offset account, on the other hand, is a second account that attaches itself to your loan. Whatever money is sitting in that, is cash and it off-sets against your loan. They might sound the same but Andrew Mirams explains the fundamental differences.