Which is better, offset or redraw?
One is not necessarily better than the other. It depends on your circumstances. With redraw you can save on interest by making additional repayments on your loan to reduce your principal loan balance. You can then take your overpayments back out if you need to access those funds. There are sometimes limits on how much you can redraw, and it can be cancelled or suspended in extreme cases – but for most variable Ubank home loans, redraw is unlimited.
Offsets keep your money available anytime for flexible financial management. The balance in your offset accounts effectively reduces the interest you are charged on your loan in the same way as additional repayments. The main difference is convenience and the annual fee you pay for access to offset accounts. Learn more from our redraw guide.