It's easy to compare loans on one number, but the features attached to a loan often do more to shape your outcome over time than the rate itself.
Offset and redraw change how your money works
An offset account lets your everyday savings reduce the interest calculated on your loan without locking the money away, while a redraw facility lets you access extra repayments you've already made. The two sound similar but behave differently — worth understanding both before assuming either is included.
Repayment flexibility can matter more than it seems
The ability to make extra repayments, adjust repayment frequency, or take a repayment pause in genuine hardship varies by loan and lender. For borrowers whose income isn't perfectly steady — commission-based roles, contractors, business owners — this flexibility is often worth more than a slightly different rate.
Portability can save you a refinance later
Some loans let you take the same loan with you if you sell one property and buy another, avoiding a full refinance. If you expect to move within a few years, checking whether a loan is portable is worth doing upfront rather than discovering the answer when you need it.
Chris Brown
Managing Director & Finance Broker at New Vision Financial Services, a credit representative under Australian Credit Licence 384704 and a member of the FBAA and AFCA. More about Chris →
Frequently asked
Do all loans come with an offset account?
No — offset accounts are usually attached to variable rate loans and often come at an extra cost on fixed loans, or aren't available at all. It's worth confirming with your broker for any specific product.
Is redraw the same as an offset account?
No. Redraw lets you withdraw extra repayments you've made on the loan itself, while an offset is a separate transaction account linked to the loan. They can have different tax implications for investment properties, so it's worth understanding which applies to your situation.
Should I always choose the loan with the most features?
Not necessarily — features you won't use can come with extra fees or a higher rate. The right combination depends on how you actually plan to use the loan, which is worth discussing before you apply.