If it's a primary place of residence then there shouldn't be any tax implications either way.
Off set accounts are the simplest place to park your money with the easiest access.…

You're probably better off checking with your accountant what's the best option from tax perspective (in most cases offset is).

Don't move it into loan account, as that will make you unable to use those funds for personal reasons without potentially complicating your tax matters further down the line, should…