Line of Credit

A line of credit is a home/loan and savings account all rolled into one.
Instead of having separate loan and savings accounts, there is only a single account.
The amount of the loan is debited to the account, and all of the borrower’s subsequent payments flow through this one account. You can have your salary directly paid into your loan account.
You can continue to borrow to the limit set in your agreement with out having to get the banks approval.
You will only pay interest on the outstanding balance.
Best suited to people who have good control over their finances and want to pay their loan off quicker.

Offset Account

An offset account is a loan product that is attached to a transaction account offsetting the interest on the home loan.
In other words, let’s say that you have a home loan of $200,000 and you have savings of $40,000, you will only pay loan interest on $160,000.
You can also direct credit your salary into your mortgage account.
Best suited to borrowers that have regular savings.