Many people choose a home loan with a 100% offset redraw facility because it helps them pay off their loan faster, with less interest.
An offset redraw facility is a sub-account within your loan account.
Whenever you put money into your offset redraw facility that money is 100% “offset” against your home loan compare.
Say you had a home loan of $350,000 and you put $10,000 into your offset redraw facility.
While that money is in there you only pay interest on $340,000.
Your monthly repayment will remain the same but more of it will go towards paying off your home loan principal and less towards interest, so you will pay down your mortgage in less time.
While your money is in the offset you can still access it.
For that reason, many people choose to maximise the “offset effect” by having their salary paid into their offset redraw facility, drawing it out it as needed.