Money decisions, worked through properly.
Australian money decisions, worked through with the actual numbers: what an extra dollar does in the mortgage versus in super, what a tax-free saving is really worth, and where the usual rules of thumb fall apart. Every page shows its arithmetic, its assumptions and its sources.
Start with a decision
Decision
Offset vs redraw
Both an offset account and a redraw facility cut the interest you pay by exactly the same amount. The differences are tax, access and cost. Money in an…
What is an offset account?An offset account is a deposit account linked to your home loan that reduces the interest you're charged…Offset vs redraw: what’s the difference?Offset and redraw cut mortgage interest by the same amount. What separates them is tax treatment if the…What is a redraw facility?A redraw facility lets you take back extra repayments above your minimum loan payment. The money cuts your…Offset or redraw if you might rent the home outOffset and redraw save identical interest today. The difference shows up only if the home later becomes a…