With a home loan offset account every dollar in your account is offset against your variable rate home loan balance.
For example if you have $1,000 dollars in your offset account, this will reduce the balance that your interest is calculated on by $1,000 dollars. That’s $1,000 dollars you’re not paying interest on, so more of each repayment goes to paying off your loan rather than paying interest.
An offset account is not available on a fixed rate home loan.