Home Truths /What's the Difference Between Offset and Redraw?

To redraw or offset?

5 min read | 20 Dec 2022

Offset versus redraw coloured photo of two front doors side-by-side smaller
Offset versus redraw coloured photo of two front doors side-by-side smaller

That is the question. 

What is the difference between Athena’s offset and redraw?

Both are fee-free. Both are easy to use. Both help you pay down your home loan faster.

And both are a better option to put your money in than a standard savings account because both save you paying interest on your mortgage.

Now, the differences:

Offset versus redraw comparison table
Offset versus redraw comparison table

To sum up

🙌 If you want flexible payments, to track how much you've saved in interest, need an account for tax purposes (usually investors), have multi-offset sub-accounts (find out about our Cash Stashes) to track savings then Athena's offset sounds suitable! 

🙌 If you're happy with simpler payments options, don't need a separate account to track interest savings and don't need an account for tax purposes, then our redraw will hit the mark.

A reminder that tax advice is not our thing, so speak to an expert!

Wanna change?

Sure. If you’re on a Power Up loan, it’s easy to switch between Athena’s offset and redraw if you change your mind at any time.

And it’s free to do so. If you’re on a Straight Up loan, you’ll first need to upgrade to Power Up before switching to an offset.   

Got questions about our redraw or offset?

Q: Can I have both a redraw and offset on a loan?

A: You need to choose either a redraw or offset on your Power Up loan. On your Straight Up loan, you only have redraw.

However, if you have multiple Power Up loan accounts now with our handy split loan structure, you can make different choices for each account.

Q: Can I still easily switch between redraw and offset?

A: If you are on the Standard Variable Rate product, you’ll be able to switch between redraw and offset the same way that you are able to now! If you are on Straight Up you’ll only have access to a redraw, but if you’re on Power Up you can choose either a redraw or offset account.

If you’re on Straight Up and change your mind later and would like to have an offset, you can easily switch to Power Up by giving us a buzz.

Q: Can I pay my salary into my offset or redraw?

A: Sure can. Putting your whole pay into your offset is a great way to reduce your interest instantly. Salary crediting is available for both our offset and redraw. Note this is not the same thing as salary sacrificing, which currently we don’t support.

Discover more about our offset

You’ve got nothing to lose except your home loan!

Start saving a whole lotta time and money

Athena acknowledges the traditional owners of the land on which we gather the Gadigal people of the Eora nation. We acknowledge that sovereignty was never ceded and respect their continued and continuing connection to this place.