Refinancing offers the opportunity to request additional features from your lender, such as access to redraw facilities and offset accounts.
An offset account functions as a transaction account linked to your home loan, where funds deposited are offset against the loan balance
when interest is calculated.
For instance, if you have $50,000 in your offset account and a $450,000 loan, interest will only be charged on $400,000 of the loan
balance. On the other hand, a redraw facility allows you to make extra repayments on your loan, which can be withdrawn if needed, subject
to the lender's discretion.
An offset account provides a valuable means to reduce interest payments on your loan, while a redraw facility offers flexibility in
emergencies or when making significant purchases. It's important to note that your lender may adjust the interest rate to
incorporate these features, so it's essential to evaluate the potential savings against any associated costs.
Before opting for these facilities, ensure that the benefits outweigh any additional expenses you may incur, allowing you to make an
informed decision regarding their inclusion in your refinanced loan.