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Picture Book · Debt recycling

Offset or redraw?

Story pages

A woman in her early forties with a ponytail walking a dog through a leafy park
Meet Lily. She's 42 and has money sitting in an offset account.
Two separate garden beds side by side
An offset account is a separate deposit account. It isn't part of the loan.
A woman's hand taking an apple from a fruit bowl on a kitchen bench
So taking money out of the offset isn't borrowing.
A watering can pouring water onto a small potted plant
If Lily uses offset money to buy shares, that doesn't make any of her home loan interest deductible.
A rope ladder hanging down from a tree house
Redrawing from the loan account itself is different: that counts as a new borrowing.
A woman in her early forties on a phone call by a sunny window
Lily asks how her own loan is set up before she moves any money.

The end

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General advice warning. This picture book is general information only. It does not take into account your objectives, financial situation or needs, and it is not personal advice. Rules and thresholds change. Before acting, consider whether it is right for you, read any relevant Product Disclosure Statement and our Financial Services Guide, and seek personal advice. Past performance is not a reliable indicator of future performance.

Information as at 27 October 2026. Sources:

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