A frequently asked question is, “Why wouldn’t I simply make extra payments or pay a lump sum off the loan? Wouldn’t this accomplish the same thing?”
The answer is yes it would reduce the interest (& term), but it may not provide the same flexibility as a Mortgage Offset Account.
If you pay the funds off the loan, you may be able to re-draw if your loan conditions allow it; – however even if this option is available, it takes time and may involve a modest fee.
A key advantage of Mortgage Offset Accounts is that you can withdraw funds whenever you like.