How does the Home Loan Offset account work?

How does the Home Loan Offset account work?

The Home Loan Offset account works by using 100% of the balance to ‘offset’ or effectively reduce the portion of your home loan accruing interest. For example, if your Defence Bank home loan had a balance of $350,000 with $50,000 linked to our Home Loan Offset account, you would only pay interest on $300,000 of your loan balance.