A 100% offset facility is a savings account linked to a loan account. No interest is paid to the offset facility but instead the balance of your offset facility is deducted from your loan account before the interest on your home loan is calculated. Therefore less interest is charged to your loan.

The interest rate on your offset facility is the same as that applied to your loan account. This is a great rate and is much higher than you could earn on most savings accounts. The interest rate moves with your loan account rate ensuring you get maximum benefit from every dollar in your offset facility.

Partial offset facility; When a savings account is linked to a mortgage, the interest paid on that savings account is used to reduce your loan interest, therefore it is non-taxable, so you are effectively reducing your tax bill.

You may have higher monthly fees attached to the offset facility, you may need a minimum balance in the offset facility.