How does the home loan offset account work?

How does the 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.