By Ramesh Kandel – Mortgage Broker & Director, Rayz Financial Services
When comparing home loans, many borrowers focus on the interest rate. While getting a competitive rate is important, choosing the right loan features can have just as much impact on how quickly you pay off your mortgage, how much interest you save, and how much flexibility you have over the life of the loan.
Whether you’re a first home buyer, upgrading to a new property, or refinancing, understanding your options is key to making the most of your loan. In this guide, we break down the most valuable home loan features and how they work.
1. Offset Accounts – Save Interest, Not Pay Tax
An offset account is a transaction account linked to your home or investment loan. The money in this account reduces (“offsets”) your loan balance for interest calculation.
- Pay less interest and own your home sooner.
- Keep money fully accessible.
- More tax-effective than savings accounts.
Rayz Tip: Check if it’s a full or partial offset, and compare fees to savings benefits.
2. Redraw Facilities – Access Extra Repayments
A redraw facility lets you withdraw extra repayments above your minimum loan requirement.
- Reduce interest while funds stay in the loan.
- Access cash for renovations, emergencies, or investments.
Rayz Tip: Review minimum redraw amounts, fees, and access times.
3. Offset vs Redraw – Which is Better?
Both reduce interest, but offset accounts provide daily flexibility while redraw requires more discipline.
Rayz Tip: Choose based on your savings habits and accessibility needs.
4. Bridging Loans – Buy Before You Sell
Short-term finance that lets you buy a new property before selling your current one.
- Move straight into your new home.
- Avoid renting or moving twice.
Rayz Tip: Be aware of peak debt interest, time limits, and capitalisation rules.
5. Package Loans vs Basic Loans
Package Loans
- Interest rate discounts and fee waivers.
- Best for larger loans with multiple accounts.
Basic Loans
- No-frills, low-rate loans with minimal extras.
- Good for smaller loans and simple needs.
6. Other Useful Loan Features
- Split Loans – Fixed + variable flexibility.
- Extra Repayments on Fixed – Limited without penalty.
- Repayment Holidays – Pause or reduce repayments temporarily.
7. Choosing the Right Features
The right home loan isn’t just the lowest rate — it’s the one with features that match your goals and lifestyle.
- High savings + daily access → Offset
- Want discipline → Redraw
- Buying before selling → Bridging Loan
- Large loan + multiple accounts → Package Loan
- Small loan + simple needs → Basic Loan
Rayz Tip: At Rayz Financial Services, we compare lenders and explain which features will save you the most money long term.
Disclaimer: This article is for general information only and does not take into account your personal circumstances. Always seek professional advice before making loan decisions.
📍 Get in Touch:
Ramesh Kandel
Mortgage Broker & Director – Rayz Financial Services
🌐 www.rayz.com.au
📧 ramesh@rayz.com.au
📞 0451 065 166 | 02 6106 9988
📍 Based in Canberra | Serving clients Australia-wide
