Ever heard of a redraw facility on your home loan but not quite sure what it means? Let’s break it down 👇
A redraw facility lets you access any extra repayments you’ve made on your mortgage. So if you’ve been paying more than the required minimum each month, you might be able to dip into that extra money later – when you really need it. 💸
✨ Here’s a quick example: Let’s say your minimum repayment is $2,000/month, but you decide to pay $2,500. After a year, you’ve paid $6,000 extra. With a redraw facility, you can potentially withdraw that $6,000 anytime!
đź’ˇ Benefits of Redraw Facilities: âś… Reduce the interest you pay over time
âś… Stay ahead on your loan
âś… Access your extra repayments in emergencies
âś… Great for those who want a bit of savings discipline!
But keep in mind: ⚠️ Some lenders may limit how or when you can redraw
⚠️ There might be fees or minimum withdrawal amounts
⚠️ Once your loan is fully paid, the redraw feature may no longer be available
🆚 Redraw vs Offset Account – What’s the difference?
Redraw: Extra repayments reduce your loan balance directly.
Offset: A separate bank account linked to your loan – your money stays accessible, but still reduces the interest on your mortgage.
Each option has pros and cons depending on how you manage your finances and how accessible you want your funds to be.
👉 Thinking about using a redraw facility or not sure if it’s right for you? Let’s chat! We can help you understand your options and make the most of your home loan.
đź“© Send us a message or give us a call today!
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