Access a Redraw Facility
How redraw works and what accessing it may mean for your loan.
A redraw facility lets you access the extra repayments you've made above the required minimum. It's a useful safety net — but importantly, it behaves differently to an offset account for tax and asset-protection purposes.
Things to consider
- Some lenders charge a fee per redraw, or have a minimum redraw amount — check the fine print.
- Redraw and offset are treated differently by the ATO in some scenarios — get accountant advice if the property may become an investment.
- Lenders can (rarely) reduce or freeze redraw availability under hardship policy — an offset account isn't subject to the same lever.
- Redraw amounts are technically the lender's money returned — that's a legal distinction worth understanding.
Related equity uses
Three more ways homeowners commonly put usable equity to work.
Unlock an Offset Account
How offset accounts may reduce interest without changing the loan.
Switch to Fixed or Split
The trade-offs between rate certainty and flexibility.
Remove Lender's Mortgage Insurance
When LMI may apply, and how a changing LVR can affect it.
Explore whether using your home loan for this purpose may be appropriate — a Mortgage Freedom Review can help you understand the potential effect on repayments, total interest and your estimated mortgage-free date before you decide.
Results are estimates based on the information provided and stated assumptions. Savings, rates, approval and earlier repayment are not guaranteed. Credit approval, valuation, lender criteria, fees and product terms apply. Refinancing may not be suitable for everyone.
Submitting an initial enquiry for a Mortgage Freedom Review does not itself lodge a loan application. If a credit report or formal application may be required later, the responsible mortgage broker will explain the proposed step and obtain the necessary authority or consent.