Refinancing & loan structure

What happens to an offset account when you refinance?

An offset account is linked to a particular loan, so refinancing normally requires checking whether the new product provides an equivalent feature.

The balance may need to be transferred, and existing direct debits or salary arrangements may need updating. Product features, fees and eligibility vary.

What to understand first

Compare the effective benefit of the offset against the new loan's rate and fees. A redraw facility is not the same as an offset account and has different access and product terms.

What lenders may consider

Make a transition checklist before settlement so money and payments are not left attached to the old lender.

Practical next steps

Gather the relevant documents and compare the complete position, including repayments, fees, timing and the purpose of the finance. Lender policy varies, and information should be confirmed for the application being considered.

Plan the changeover

A refinance can affect linked accounts and payment instructions even when the loan purpose stays the same.

  • Record the offset balance, direct debits and salary credits before settlement.
  • Compare the new account's access rules, fees and eligibility.
  • Do not close the old facility until the refinance and payment arrangements are confirmed.

This article is general information only and is not personal financial, legal, accounting or tax advice. Credit is subject to lender criteria, eligibility and approval.

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